GOVERNMENT OF INDIA

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, Dated 5th June 2015
 
(F. No. 1/1/2014-CL.V)

G.S.R. 464(E) – In exercise of the powers conferred by clauses (a) and (b) of sub-section (1) of section 462 and in pursuance of sub-section (2) of said section of the Companies Act, 2013 (18 of 2013), the Central Government, in the interest of public, hereby directs that certain provisions of the Companies Act, 2013, as specified in column (2) of the Table, shall not apply or shall apply with such exceptions, modifications and adaptations, as specified in column (3) of the said Table, to a private company, namely:-

namely:-

Serial number Chapter/   Section  number/ Sub- section(s) in the Companies Act, 2013 Exceptions/ Modifications  /Adaptations

(1)

(2)

(3)

1 Chapter I, sub-clause  (viii) of clause 76 of section 2. Shall not apply with respect to section 188.
2 Chapter IV, section 43 and section 47. Shall not   apply   where memorandum or articles of association  of  the  private company so provides.
3 Chapter IV, sub-clause (1) of clause (a) of sub-section (1) and sub-section  (2)  of section 62 Shall  apply  with  following modifications:-In clause  (a), in sub-clause(i), the   following   proviso  shall be inserted, namely:-

Provided that notwithstanding anything  contained in this sub-clause  and sub-section (2) of this  section,  in case ninety per cent of the members of a private company have given their consent in -writing or in electronic   mode,   the periods  lesser  than  those specified  in  the  said  sub-clause or sub-section shall apply.

4 Chapter IV, clause  (b) of sub-section (1) of section 62. In clause  (b), for the words “special  resolution”,  the words “ordinary resolution” shall be substituted
5. Chapter IV, section 67. Shall  not apply to  private companies –(a) in whose share capital no other  body  corporate  has invested any money;(b) if the borrowings of such a company  from banks or financial institutions or any body corporate is less than twice  its  paid  up  share capital or fifty crore rupees, whichever is lower; and

(c) such a company is not in  default   in   repayment   of  such borrowings subsisting at   the   time   of   making transactions under   this section.

6. Chapter V, clauses  (a)  to  (e)  of  sub-section (2) of section 73 Shall not apply to a private company   which   accepts from  its  members  monies not exceeding one hundred per cent. of aggregate of the paid  up share capital and free  reserves,  and  such company   shall   file the details   of monies   so accepted to the Registrar in such  manner  as  may  be specified.
7. Chapter VII, sections  101 to 107 and section  109. Shall apply unless otherwise specified  in  respective sections  or  the  articles of the company provide otherwise.
8. Chapter VII, clause (g) of sub-section (3) of section  1 17. Shall not apply.
9. Chapter X, Clause  (g) of sub-section (3) of section  141. Shall apply   with the modification that the words  “other   than   one   person companies, dormant companies, small  companies   and   private  companies  having  paid-up  share capital less than one  hundred crore rupees” shall  be inserted after the words  “twenty companies”.
10. Chapter XI, section 160. Shall not apply.
11. Chapter XI, section 162 Shall not apply.
12. Chapter XII, section 180. Shall not apply.
13. Chapter XII, sub-section (2)  of section184. Shall apply   with the exception that the interested director may  participate in such meeting after disclosure   of   his  interest.
14. Chapter XII, section 185. Shall not apply to a private company –(a) in whose share capital no other  body  corporate  has invested any money;(b)  if  the borrowings  of such a company from banks or  financial  institutions or any body corporate is less than  twice  of its  paid  up share capital or fifty crore rupees, whichever is lower; and

(c) such a company has no default   in   repayment   of such borrowings subsisting at   the   time   of   making  transactions under   this section

 

15. Chapter XII, second proviso to sub- section (1) of section 188. Shall not apply.
16. Chapter XIII, sub-sections (4) and (5) of section 196. Shall not apply.

2.  The   private   companies,   while   complying   with   such   exceptions, modifications and adaptations, as specified in column (3) of the aforesaid Table, shall ensure that the interests of their shareholders are protected.

3.  A copy of this notification has been laid in draft before both Houses of Parliament as required by sub-section (2) of section 462 of the Companies Act., 2013.

[F No. 1/1/2014-CL.V]

Amardeep Singh Bhatia,

Joint Secretary to the Government of India

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Category : Company Law (3466)
Type : Notifications (15371) Notifications/Circulars (30585)

One response to “Exemptions to Private Companies U/s. 462 of CA 2013”

  1. sonu kkc says:

    is section 180 applicable to foreign suby which is private company?

  2. PAWAN says:

    WHAT WL B EFFECTIVE DATE OF THESE MODIFICATION. CAN A AUDITOR EXCEPT MORE THAN 20CO AUDIT IN AGM HELD IN SEP 14 FOR FY 14-15

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