Companies (Removal of Difficulties) Fifth Order, 2014 dated 9th July, 2014
MINISTRY OF CORPORATE AFFAIRS
ORDER
New Delhi, dated 09/07/ 2014
S.O. 1820(E) – Whereas the Companies Act, 2013 (18 of 2013) (hereinafter referred to as the said Act) received the assent of the President on 29th August, 2013 and section 1 thereof came into force on the same date;
And whereas clause (76) of section 2 of the said Act define the term ‘related party” In sub-clause (v) of the said clause, the word ‘or’ has appeared inadvertently and therefore defeating the intention of that clause.
And whereas difficulties have arisen regarding compliance with the provision.
Now, therefore, in exercise of the powers conferred by sub-section (1) of section 470 of the Companies Act, 2013 the Central Government hereby makes the following order to remove the above said difficulties, namely:-
1. Short title and commencement –
(1) This order may be called the Companies (Removal of Difficulties) Fifth Order, 2014.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In sub-clause (v) of clause (76) of section 2, for the word “or”, the word “and” shall be substituted.
[F. No. 2/5/2014-CL V]
AMARDEEP SINGH BHATIA,
JOINT SECRETARY
I am reproducing Sec 2(76)(v) of Companies Act, 2013, on related party :
(v) a public company in which a director or manager is a director or holds along with his relatives, more than two per cent of its paid up share capital.
The present order proposes the following :
In sub-clause (v) of clause (76) of section 2, for the word “or”, the word “and” shall be substituted.
In 2(76)(v) “or” is repeated twice….which “or” to be substituted ?
I know it is the “or” occuring in the second instance that has to be substituted. But more clarity is expected.
Waseem
Company Secretary
Hyderabad