The companies registered under the companies act, 1956 or the earlier companies. The companies act, 1956 section 303 to 674 the schedule. Page 7 other corporate laws competition act, 2002 as amended upto date 7. Whether this will amount to investment under the provisions of section 372a of the companies act, 1956 for the listed company. Check list for application under section 295 and 372a of the. Resolved that pursuant to section 372a and other applicable. All documents referred to in the accompanying notice and the. Clarification with regard to applicability of provision of section 372a of the companies act 1956. Section 372a of the companies act, 1956, specifically exempts any loans made, any guarantee given or security provided or any investment made by a holding company to its wholly owned subsidiary. Section 372a of the companies act,1956 corporate law forum. If you agree then only proceed to download companies act 20 pdf. Subject to the provisions of the act, the board of directors of a company shall be entitled to exercise all such powers, and to do all such acts and things, as the company is authorized to exercise and do.
Registers and documents to be maintained by the company the various registers and files to be maintained by the companies under the companies act, 1956 and other corporate laws have been segregated into three categories as follows. The companies act, 1956 memorandum of association of the federation of indian mineral industries new delhi limited by guarantee and not having a share capital name 1. Section 372 in the companies act, 1956 indian kanoon. Introduction to companies act 19561 board of directors. Welcome to national foundation for corporate governance. Companies acts section 185, 186 and 372a ambiguities come. Mca has clarified that exemption as provided in section 372a8d of the companies act, 1956 shall be applicable in respect of guarantee given or security provided by. Companies acts section 185, 186 and 372a ambiguities. Classification on the basis of number of members private company a private company means a company which has a minimum paid up capital of rs. Public financial institutions under section 4a of the.
Erstwhile corresponding section 372a of 1956 act was. Any person would cover even individuals including employees of the company. Dear all, today, ministry of corporate affairs has issued a general circular clarifying the applicability of section 185 of the companies act, 20 on holding subsidiary companies. Companies act 1956 section 266a citation 11205 bare. Independent auditors report to the board of directors of. The various statutory registers and their applicability to companies are as follows. The companies act 1956 indian bare acts india bare act. Mca clarification on applicability of section 372a of of. This is a ready reckoner for the information of stakeholders. In terms of section 372a of the act, the making of investments or giving guarantees or providing security in connection with a loan and. The curious case of section 4 7 of the companies act, 1956. The word person has not been defined under the 20 act.
The companies incorporated by means of statute of special act of the parliament or any state legislative eg. Section 372a of the companies act, 1956 the act deals with intercorporate loan, investment, guarantee and securities in connection with loan. Please refer to the relevant notifications and circulars issued separately. Since then section 372a of the companies act 1956 comes in. Table containing provisions of companies act, 20 as. The issue has been examined with reference to applicability of section. Section 372a of 1956 act covers only body corporate, whereas section 186 of the 20 act covers perons and body corporate. Greater accountability should be provided for with respect to transfer of money by way of inter corporate deposits, or advances of any kind, from listed companies to any other company, as a necessary concomitant of the liberalisation that section 372a of the companies act, 1956 provides. Companies act, 1956 bare acts law library advocatekhoj. Comparison of section 186 of companies act, 20 and. The pdf file you are about to download is not created by writinglaw. Pursuant to section 192a of the companies act, 1956.
Companies act the companies act is a successor to the indian companies act of 19 and is a consolidation of many successive amendment acts, statutory rules and principles laid down in decisions of. Act, 1960, choose not more than two of those companies as companies in which he wishes to continue to hold the office of managing director or manager, as the case may be. Mca has clarified that exemption as provided in section 372a8d of the companies act, 1956 shall be applicable in respect of guarantee given or security provided by a holding company for loans made by a bank or financial institution to its subsidiary company and this exemption will be available till section 186 of the ca, 20 is notified. Registers and documents to be maintained by the company. Be it enacted by parliament in the sixth year of the republic of india as follows 1. All the four transactions are frequently taken place in any company and henceforth the section becomes more important and therefore it requires to special heed by virtue of strict penal provisions and. There is no such condition in section 185 of companies act, 20 and section 372a of companies act, 1956. Accordingly, it put restriction on loan to employees beyond the specified limits 1956 act. Erstwhile corresponding section 372a of 1956 act was also not applicable to.
This post is contributed by vaibhav modi section 4a of the companies act, 1956 the act lays down what institutions shall be regarded as public financial institutions for the purposes of the act. Applicability of section 372a companies act 1956 abcaus. Every a individual, intending to be appointed as director of a company. Section 372a of the companies act legal service india.
In computing at any time the percentages specified in sub section 2 and the provisos thereto, the aggregate of the investments made by the investing company in other body or bodies corporate whether before or after the commencement of the companies amendment act, 1960 65 of 1960, up to that time shall be taken into account. In terms of section 192 a of the companies act 1956 read with companies passing of resolution by postal ballot rules, 2001 and with a view to ensure participation of all members of the company in passing of the resolutions, the items of business set out. The companies act, 1956 section 303 to 674 the schedule, indian bare acts at, a website for indian laws and bareacts, legal advice. Jun 08, 2011 section 4a of the companies act, 1956 the act lays down what institutions shall be regarded as public financial institutions for the purposes of the act. Application for allotment of director identification number. The companies act 1956 in india bare acts, banking and insurance, business and corporate, constitutional, consumer laws, criminal law, energy, environmental, family and inheritance, heritage and national importance, immigration law, labor law, the companies act 1956 national security, others, procedural and administration, property related, public utilities, shipping laws, tax laws. Section 263a sections 177, 255, 256 and 263 not to apply in relation to companies not carrying business for profit, etc. The issue has been examined with reference to applicability of section 372a of the companies act, 1956 visavis section 185 of the companies act, 20. A copy each of the documents referred to in the accompanying. An act to consolidate and amend the law relating to companies and certain other associations. Main provisions of companies act 1956 presented by. Group 1 aarti singh, azhar hussain, jyoti nawlani, nemchand meena, renuka sharma companies act. Manner of reporting on section 2273bb of the companies act, 1956.
The central government has constituted national company law tribunal nclt under section 408 of the companies act, 20 18 of 20 w. Introduction to companies act 19561 free download as powerpoint presentation. Construction of references to documents annexed to accounts. Companies act, 20 some issues requiring urgent actions. A company, whether by itself or together with its subsidiaries hereafter in this section and section 373 referred as the investing company, shall not be entitled to acquire, by way of subscription, purchase or otherwise whether by itself. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. India the companies act 1956 sec 25 power to dispense with limited in name of charitable or other company. Companies act 1956 explains about the whole procedure of the how to form a company, its fees procedure, name, constitution, its members, and the motive behind the company, its share capital, about its general board meetings, management and administration of the company including an important part which is the directors as they are the decision. As per section 231 of the income tax act 1961, person includes. Apr 04, 20 33 prescribed means, as respects the provisions of this act relating to the winding up of companies except subsection 5 of section 503, 23subsection 3 of section 550, section 552 and subsection 3 of section 555, prescribed by rules made by the supreme court in consultation with 24 the tribunal, and as respects the other. In the first phase the ministry of corporate affairs have set up eleven benches, one principal bench at new delhi and one each regional benches at new delhi, ahmedabad, allahabad, bengaluru.
The companies registered under the companies act, 1956 or the earlier companies act. Companies act 1956 the act and rules made there under, seeking the approval of its members in terms of section 272a of the act. This circular will apply till section 186 is notified, and if and when section 186 is notified, there will be again ambiguity as section 186 does not grant exemptions in holding and wholly owned subsidiary cases like section 372a does. Nov 20, 20 earlier, mca has notified 98 section wef 12. Meaning under section 25 of the companies act, 1956 under indian law, 3 legal forms exist for non profit organizations. Section 186 of the companies act, 20 is yet to be notified. Clarification on section 372a of the companies act, 1956. Section 264 consent of candidate for directorship to be filed with the company and consent to act as director to be filed with the registrar. With regard to section 372a3 of the companies act, 1956, kindly refer to general circular no. See gazette of india, extraordinary, 1956, part ii, section 3, p. Section 372a inter corporate loaninvestmentguarantee.
Notice pursuant to section 192a of the companies act, 1956 read with the. The various registers and files to be maintained by the companies under the companies act, 1956 and other corporate laws have been segregated into three categories as follows. Feb 14, 2014 mca has clarified that exemption as provided in section 372a 8d of the companies act, 1956 shall be applicable in respect of guarantee given or security provided by a holding company for loans made by a bank or financial institution to its subsidiary company and this exemption will be available till section 186 of the ca, 20 is notified. The name of the company hereinafter called the federation is the federation of indian mineral industries. Mca has now clarified that sec 372a of the companies act 1956 dealing with intercorporate loans continues to remain in force till sec 186 of companies act 20 is notified. Section 309 of the companies act, 1956 remuneration of directors approval of central government under section 309 not required in case of increase in remuneration of nonwhole time directors of a company solely on account of payment of service tax on commission payable to them by the company. Frequently asked questions on section 186 of companies act 20. Companies act 1956 all sections list share and discover. Ca final study material,practice manual for may 2014 download new tax amendments for ca ipcc, final maynov 2014 download all accounting standards for ca,cwacma,cs exams download ipcc study material, practice manual, ppt, podcasts for may 2014 exams download ca. The curious case of section 4 7 of the companies act, 1956 this issue is of paramount importance for foreign companies having majority shareholding in indian companies since classification as a.
The companies act, 1956 memorandum of association of the. X x x x extracts x x x x b extracts may be taken therefrom and copies thereof may be required, by any member of the company to the same extent, in the same manner, and on payment of the same fees as in the case of the register of members of the company. Table containing provisions of companies act, 20 as notified up to date and corresponding provisions thereof under companies act, 1956 note. The indian companies act, 1956 basic concept the word company. Definitions of company, existing company, private company and public company 4. Companies act, 1956 section 303 to 674 latest laws. Section 291 of the companies act, 1956 confers general power on the board of directors. Companies act 1956, 20 pdf bare act, bare act pdf, law. In a jv company wherein the indian listed company is providing know how and in lieu of that the jv company is allotting shares of 25%. Section 4a2 empowers the central government to specify other institutions as a public financial institution by a gazetted notification.
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