1 The Companies Act, 2013 - AUBSP

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(Updated till 20th November, 2017) Indian Corporate world will never forget the historic date 08/08/2013 on which the Rajya Sabha passed the Companies Bill, 2012 and it has now replaced 57 years old Companies Act, 1956 with the new Companies Act, 2013 after receiving the assent of the President of India on the Thursday, 29 August 2013. The Companies Act, 2013 has been notified in the Official Gazette on 30th August, 2013.

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Introduction The Companies Act, 2013 (18 of 2013) is a modern, forward looking and International level corporate law in India. It replaces the decades old Companies Act, 1956 (1 of 1956) which was amended lots of time. The long-awaited Companies Bill 2013 got its assent in the Lok Sabha on 18th December, 2012 and in the Rajya Sabha on 8th August, 2013. After having obtained the assent of the President of India on 29th August, 2013, it has now become the Companies Act, 2013. The new Act has introduced some new concepts like definition of One Person Company, Small Company, Dormant Company, Independent Directors, Cross Border Mergers etc. It also prescribes the functions of Company Secretary and the Concept of Corporate Social Responsibility in the Indian context. New provisions are being brought out by the Act to meet the challenges of the changing environment at the national as well as international level. The Act contains 470 sections under 29 chapters with seven schedules. However, currently there are only 432 (470+1-39) sections remains in the Act. Out of those 432 sections, the Ministry of Corporate Affairs has already notified 430 (1+98+1+183+1+1+5+37+1+7+88+5+1+1) sections and majority of the Rules to the various Chapters/Sections of the Companies Act, 2013. Only two sections i.e. 132 and 465 are not yet notified. The first amendment to this Act has received the assent of the President on May 25, 2015 and may be called the Companies (Amendment) Act, 2015 (21 of 2015). However, the Companies Bill, 2016 has yet to be enacted by Parliament and thereafter it will be called the Companies (Amendment) Act, 2016. I have used the following different colors to represent the latest amendments made in the companies act, 2013: [Text with Green Color Represents Insertion] [Text with Purple Color Represents Substitution] [Text with Red Color Represents Exceptions/Modifications/Adaptations] I prepared this E-Book for the help of students and professionals who may access it as per their convenience while working on the desk or on the move through their computer, laptop, tablet, iPad and mobile etc. Accordingly, this eBook is available in PDF as well as Kindle format. I am very confident that this E-Book would be of immense help to CA/CS/CMA students in preparing for their coming exams and Chartered Accountants, Cost Accountants and Company Secretaries in carrying out their professional assignments.

Suresh Prasad www.aubsp.com Kolkata Monday, November 20, 2017

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The Companies Act, 2013

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Disclaimer

This e-Book on Companies Act, 2013 (18 of 2013) has been prepared for the benefit of Students and Professionals. It is based on the Companies Act 2013, the Companies (Amendment) Act, 2015 (21 of 2015), Rules, Orders, Circulars and Notifications as notified by the Ministry of Corporate Affairs. Although we endeavour to provide accurate and updated information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Accordingly, we accept no responsibility for any omission or errors it may contain, whether caused by negligence or otherwise, or for any loss, however caused, or sustained by any person that relies on it. Hence, the users are advised to cross check with the original Act, Rules, Orders, Circulars, Notifications and Amendments before acting upon this E-Book. This E-Book on Companies Act, 2013 is only for your personal use. No part of this eBook may be shared or reproduced in any manner or copied in any form or by any means without the written prior permission from the author.

Author: Suresh Prasad Website: www.aubsp.com E-mail: [email protected]

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[18 of 2013]1

The Companies Act, 2013 [As amended by the Companies (Amendment) Act, 2015 (21 of 2015)]

1

Received the assent of the President on 29th August, 2013.

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INDEX

Chapter-wise and Section-wise

Table of Contents

INDEX Table of Contents (Chapter-wise and Section-wise) Introduction ........................................................................................................................................ 2 Disclaimer............................................................................................................................................ 3

CHAPTER I PRELIMINARY (Section 1-2) ........................................................................ 55 1. Short title, extent, commencement and application .................................................................... 56 2. Definitions ..................................................................................................................................... 57 (1) Abridged Prospectus:............................................................................................................... 57 (2) Accounting Standards: ............................................................................................................. 57 (3) Alter or Alteration:................................................................................................................... 57 (4) Appellate Tribunal: .................................................................................................................. 57 (5) Articles: .................................................................................................................................... 57 (6) Associate Company:................................................................................................................. 57 (7) Auditing Standards: ................................................................................................................. 57 (8) Authorised Capital or Nominal Capital: ................................................................................... 57 (9) Banking Company: ................................................................................................................... 58 (10) Board of Directors or Board: ................................................................................................. 58 (11) Body Corporate or Corporation: ............................................................................................ 58 (12) Book and Paper and Book or Paper: ...................................................................................... 58 (13) Books of Account: .................................................................................................................. 58 (14) Branch Office: ........................................................................................................................ 58 (15) Called-up Capital:................................................................................................................... 58 (16) Charge: ................................................................................................................................... 58 (17) Chartered Accountant: .......................................................................................................... 58 (18) Chief Executive Officer: ......................................................................................................... 59 (19) Chief Financial Officer:........................................................................................................... 59 (20) Company: ............................................................................................................................... 59

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(21) Company Limited by Guarantee: ........................................................................................... 59 (22) Company Limited by Shares: ................................................................................................. 59 (23) Company Liquidator: ............................................................................................................. 59 (24) Company Secretary or Secretary: .......................................................................................... 59 (25) Company Secretary in Practice: ............................................................................................. 59 (26) Contributory: ......................................................................................................................... 59 (27) Control: .................................................................................................................................. 59 (28) Cost Accountant: ................................................................................................................... 60 (29) Court: ..................................................................................................................................... 60 (30) Debenture:............................................................................................................................. 60 (31) Deposit:.................................................................................................................................. 60 (32) Depository: ............................................................................................................................ 60 (33) Derivative:.............................................................................................................................. 60 (34) Director: ................................................................................................................................. 61 (35) Dividend: ................................................................................................................................ 61 (36) Document: ............................................................................................................................. 61 (37) Employees’ Stock Option: ...................................................................................................... 61 (38) Expert:.................................................................................................................................... 61 (39) Financial Institution: .............................................................................................................. 61 (40) Financial Statement: .............................................................................................................. 61 (41) Financial Year:........................................................................................................................ 62 (42) Foreign Company: .................................................................................................................. 62 (43) Free Reserves:........................................................................................................................ 62 (44) Global Depository Receipt: .................................................................................................... 62 (45) Government Company: ......................................................................................................... 62 (46) Holding Company: ................................................................................................................. 63 (47) Independent Director: ........................................................................................................... 63 (48) Indian Depository Receipt: .................................................................................................... 63 (49) Interested Director: ............................................................................................................... 63 (50) Issued Capital: ........................................................................................................................ 63 (51) Key Managerial Personnel: .................................................................................................... 63 (52) Listed Company: .................................................................................................................... 63 (53) Manager: ............................................................................................................................... 63 (54) Managing Director: ................................................................................................................ 63 (55) Member: ................................................................................................................................ 64 (56) Memorandum:....................................................................................................................... 64

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(57) Net Worth: ............................................................................................................................. 64 (58) Notification: ........................................................................................................................... 64 (59) Officer: ................................................................................................................................... 64 (60) Officer who is in Default: ....................................................................................................... 64 (61) Official Liquidator: ................................................................................................................. 65 (62) One Person Company: ........................................................................................................... 65 (63) Ordinary or Special Resolution: ............................................................................................. 65 (64) Paid-up Share Capital or Share Capital Paid-up:.................................................................... 65 (65) Postal Ballot: .......................................................................................................................... 65 (66) Prescribed: ............................................................................................................................. 65 (67) Previous Company Law:......................................................................................................... 65 (68) Private Company: .................................................................................................................. 66 (69) Promoter:............................................................................................................................... 67 (70) Prospectus: ............................................................................................................................ 67 (71) Public Company: .................................................................................................................... 67 (72) Public Financial Institution: ................................................................................................... 67 (73) Recognised Stock Exchange: .................................................................................................. 68 (74) Register of Companies: .......................................................................................................... 68 (75) Registrar:................................................................................................................................ 68 (76) Related Party: ........................................................................................................................ 68 (77) Relative: ................................................................................................................................. 69 (78) Remuneration: ....................................................................................................................... 69 (79) Schedule: ............................................................................................................................... 69 (80) Scheduled Bank: .................................................................................................................... 69 (81) Securities: .............................................................................................................................. 69 (82) Securities and Exchange Board:............................................................................................. 69 (83) Serious Fraud Investigation Office:........................................................................................ 69 (84) Share: ..................................................................................................................................... 69 (85) Small Company: ..................................................................................................................... 69 (86) Subscribed Capital: ................................................................................................................ 70 (87) Subsidiary Company or Subsidiary: ....................................................................................... 70 (88) Sweat Equity Shares: ............................................................................................................. 70 (89) Total Voting Power: ............................................................................................................... 71 (90) Tribunal: ................................................................................................................................. 71 (91) Turnover: ............................................................................................................................... 71 (92) Unlimited Company: .............................................................................................................. 71

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(93) Voting Right: .......................................................................................................................... 71 (94) Whole-time Director:............................................................................................................. 71 (94A) Winding Up:......................................................................................................................... 71 Exception/ Modification/ Adaptation: ........................................................................................ 71

CHAPTER II INCORPORATION OF COMPANY AND MATTERS INCIDENTAL THERETO (Section 322) .......................................................................................................................................... 73 3. Formation of company .................................................................................................................. 74 Exception/ Modification/ Adaptation: ........................................................................................ 75 4. Memorandum ............................................................................................................................... 76 Exception/ Modification/ Adaptation: ........................................................................................ 78 5. Articles .......................................................................................................................................... 80 6. Act to override memorandum, articles, etc. ................................................................................. 81 7. Incorporation of company ............................................................................................................ 82 8. Formation of companies with charitable objects, etc. ................................................................. 85 9. Effect of registration ..................................................................................................................... 88 10. Effect of memorandum and articles ........................................................................................... 89 11. Commencement of business, etc. [Omitted w.e.f. 29-05-2015] ................................................ 90 12. Registered office of company ..................................................................................................... 91 Exception/ Modification/ Adaptation: ........................................................................................ 92 13. Alteration of memorandum ........................................................................................................ 94 14. Alteration of articles. .................................................................................................................. 96 15. Alteration of memorandum or articles to be noted in every copy ............................................. 97 16. Rectification of name of company .............................................................................................. 98 17. Copies of memorandum, articles, etc., to be given to members. .............................................. 99 18. Conversion of companies already registered. .......................................................................... 100 19. Subsidiary company not to hold shares in its holding company. ............................................. 101 20. Service of documents................................................................................................................ 102 Exception/ Modification/ Adaptation: ........................................................................................ 102 21. Authentication of documents, proceedings and contracts ...................................................... 103 Exception/ Modification/ Adaptation: ...................................................................................... 103 22. Execution of bills of exchange, etc. ........................................................................................... 104

CHAPTER III PROSPECTUS AND ALLOTMENT OF SECURITIES (Section 23-42) .................. 105 23. Public offer and private placement........................................................................................... 106 24. Power of Securities and Exchange Board to regulate issue and transfer of securities, etc...... 107 25. Document containing offer of securities for sale to be deemed prospectus. .......................... 108

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26. Matters to be stated in prospectus. ......................................................................................... 109 27. Variation in terms of contract or objects in prospectus. .......................................................... 113 28. Offer of sale of shares by certain members of company. ......................................................... 114 29. Public offer of securities to be in dematerialised form. ........................................................... 115 30. Advertisement of prospectus.................................................................................................... 116 31. Shelf prospectus........................................................................................................................ 117 32. Red herring prospectus. ............................................................................................................ 118 33. Issue of application forms for securities. .................................................................................. 119 34. Criminal liability for misstatements in prospectus. .................................................................. 120 35. Civil liability for misstatements in prospectus. ......................................................................... 121 36. Punishment for fraudulently inducing persons to invest money. ............................................ 122 37. Action by affected persons. ...................................................................................................... 123 38. Punishment for personation for acquisition, etc., of securities............................................... 124 39. Allotment of securities by company. ........................................................................................ 125 40. Securities to be dealt with in stock exchanges. ........................................................................ 126 41. Global depository receipt. ........................................................................................................ 127 42. Offer or invitation for subscription of securities on private placement. .................................. 128 Exception/ Modification/ Adaptation: ........................................................................................ 130

CHAPTER IV SHARE CAPITAL AND DEBENTURES (Section 43-72) .................................. 131 43. Kinds of share capital. ............................................................................................................... 132 Exception/ Modification/ Adaptation: ...................................................................................... 133 44. Nature of shares or debentures. ............................................................................................... 134 45. Numbering of shares................................................................................................................. 135 46. Certificate of shares. ................................................................................................................. 136 47. Voting rights. ............................................................................................................................. 137 Exception/ Modification/ Adaptation: ...................................................................................... 137 48. Variation of shareholders’ rights .............................................................................................. 138 49. Calls on shares of same class to be made on uniform basis ..................................................... 139 50. Company to accept unpaid share capital, although not called up ........................................... 140 51. Payment of dividend in proportion to amount paid-up ........................................................... 141 52. Application of premiums received on issue of shares .............................................................. 142 53. Prohibition on issue of shares at discount ................................................................................ 143 54. Issue of sweat equity shares ..................................................................................................... 144 Exception/ Modification/ Adaptation: ...................................................................................... 144 55. Issue and redemption of preference shares ............................................................................. 145

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56. Transfer and transmission of securities .................................................................................... 147 Exception/ Modification/ Adaptation: ...................................................................................... 148 57. Punishment for personation of shareholder ............................................................................ 149 58. Refusal of registration and appeal against refusal ................................................................... 150 59. Rectification of register of members ........................................................................................ 151 60. Publication of authorised, subscribed and paid-up capital ...................................................... 152 61. Power of limited company to alter its share capital ................................................................. 153 62. Further issue of share capital.................................................................................................... 154 Exception/ Modification/ Adaptation: ...................................................................................... 155 63. Issue of bonus shares ................................................................................................................ 157 64. Notice to be given to Registrar for alteration of share capital ................................................. 158 65. Unlimited company to provide for reserve share capital on conversion into limited company ........................................................................................................................................................ 159 66. Reduction of share capital ........................................................................................................ 160 67. Restrictions on purchase by company or giving of loans by it for purchase of its shares ........ 163 Exception/ Modification/ Adaptation: ...................................................................................... 164 68. Power of company to purchase its own securities ................................................................... 165 69. Transfer of certain sums to capital redemption reserve account ............................................ 168 70. Prohibition for buy-back in certain circumstances. .................................................................. 169 71. Debentures................................................................................................................................ 170 72. Power to nominate ................................................................................................................... 172

CHAPTER V ACCEPTANCE OF DEPOSITS BY COMPANIES (Section 73-76A) ...................... 173 73. Prohibition on acceptance of deposits from public. ................................................................. 174 Exception/ Modification/ Adaptation: ...................................................................................... 175 74. Repayment of deposits, etc., accepted before commencement of this Act. ........................... 176 75. Damages for fraud .................................................................................................................... 177 76. Acceptance of deposits from public by certain companies ...................................................... 178 76A. Punishment for contravention of section 73 or section 76 .................................................... 179

CHAPTER VI REGISTRATION OF CHARGES (Section 77-87)........................................... 180 77. Duty to register charges, etc. .................................................................................................... 181 78. Application for registration of charge ....................................................................................... 182 79. Section 77 to apply in certain matters ...................................................................................... 183 80. Date of notice of charge. .......................................................................................................... 184 81. Register of charges to be kept by Registrar .............................................................................. 185 82. Company to report satisfaction of charge ................................................................................ 186 Exception/ Modification/ Adaptation: ...................................................................................... 186

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83. Power of Registrar to make entries of satisfaction and release in absence of intimation from company.......................................................................................................................................... 187 84. Intimation of appointment of receiver or manager ................................................................. 188 85. Company’s register of charges .................................................................................................. 189 86. Punishment for contravention .................................................................................................. 190 87. Rectification by Central Government in register of charges..................................................... 191

CHAPTER VII MANAGEMENT AND ADMINISTRATION (Section 88-122) ........................... 192 88. Register of members, etc. ......................................................................................................... 193 89. Declaration in respect of beneficial interest in any share ........................................................ 194 Exception/ Modification/ Adaptation: ...................................................................................... 195 90. Investigation of beneficial ownership of shares in certain cases ............................................. 196 Exception/ Modification/ Adaptation: ...................................................................................... 196 91. Power to close register of members or debenture holders or other security holders............. 197 92. Annual return. ........................................................................................................................... 198 Exception/ Modification/ Adaptation: ...................................................................................... 199 93. Return to be filed with Registrar in case promoters’ stake changes ........................................ 200 94. Place of keeping and inspection of registers, returns, etc........................................................ 201 95. Registers, etc., to be evidence. ................................................................................................. 202 96. Annual general meeting ............................................................................................................ 203 Exception/ Modification/ Adaptation: ........................................................................................ 203 97. Power of Tribunal to call annual general meeting .................................................................... 204 98. Power of Tribunal to call meetings of members, etc. ............................................................... 205 99. Punishment for default in complying with provisions of sections 96 to 98. ............................ 206 100. Calling of extraordinary general meeting ............................................................................... 207 Exception/ Modification/ Adaptation: ........................................................................................ 207 101. Notice of meeting ................................................................................................................... 209 Exception/ Modification/ Adaptation: ...................................................................................... 209 102. Statement to be annexed to notice ........................................................................................ 210 Exception/ Modification/ Adaptation: ...................................................................................... 211 103. Quorum for meetings ............................................................................................................. 212 Exception/ Modification/ Adaptation: ...................................................................................... 212 104. Chairman of meetings ............................................................................................................. 213 Exception/ Modification/ Adaptation: ...................................................................................... 213 105. Proxies ..................................................................................................................................... 214 Exception/ Modification/ Adaptation: ...................................................................................... 215 106. Restriction on voting rights ..................................................................................................... 216

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Exception/ Modification/ Adaptation: ...................................................................................... 216 107. Voting by show of hands ......................................................................................................... 217 Exception/ Modification/ Adaptation: ...................................................................................... 217 108. Voting through electronic means ........................................................................................... 218 109. Demand for poll ...................................................................................................................... 219 Exception/ Modification/ Adaptation: ...................................................................................... 219 110. Postal ballot ............................................................................................................................ 220 111. Circulation of members’ resolution ........................................................................................ 221 112. Representation of President and Governors in meetings ...................................................... 222 113. Representation of corporations at meeting of companies and of creditors. ......................... 223 114. Ordinary and special resolutions. ........................................................................................... 224 115. Resolutions requiring special notice ....................................................................................... 225 116. Resolutions passed at adjourned meeting ............................................................................. 226 117. Resolutions and agreements to be filed. ................................................................................ 227 Exception/ Modification/ Adaptation: ...................................................................................... 228 118. Minutes of proceedings of general meeting, meeting of Board of Directors and other meeting and resolutions passed by postal ballot.......................................................................................... 229 Exception/ Modification/ Adaptation: ...................................................................................... 230 119. Inspection of minute-books of general meeting. ................................................................... 231 120. Maintenance and inspection of documents in electronic form ............................................. 232 121. Report on annual general meeting ......................................................................................... 233 122. Applicability of this Chapter to One Person Company ........................................................... 234

CHAPTER VIII DECLARATION AND PAYMENT OF DIVIDEND (Section 123-127) .............. 235 123. Declaration of dividend ........................................................................................................... 236 Exception/ Modification/ Adaptation: ........................................................................................ 237 124. Unpaid Dividend Account ....................................................................................................... 238 125. Investor Education and Protection Fund ................................................................................ 240 126. Right to dividend, rights shares and bonus shares to be held in abeyance pending registration of transfer of shares ........................................................................................................................ 243 127. Punishment for failure to distribute dividends ....................................................................... 244 Exception/ Modification/ Adaptation: ........................................................................................ 244

CHAPTER IX ACCOUNTS OF COMPANIES (Section 128-138) .......................................... 245 128. Books of account, etc., to be kept by company ...................................................................... 246 129. Financial statement................................................................................................................. 248 Exception/ Modification/ Adaptation: ........................................................................................ 249 130. Re-opening of accounts on court’s or Tribunal’s orders......................................................... 250

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131. Voluntary revision of financial statements or Board’s report ................................................ 251 132. Constitution of National Financial Reporting Authority ......................................................... 252 133. Central Government to prescribe accounting standards ....................................................... 255 134. Financial statement, Board’s report, etc. ............................................................................... 256 Exception/ Modification/ Adaptation: ........................................................................................ 258 135. Corporate Social Responsibility .............................................................................................. 260 Exception/ Modification/ Adaptation: ........................................................................................ 261 136. Right of member to copies of audited financial statement .................................................... 262 Exception/ Modification/ Adaptation: ........................................................................................ 263 137. Copy of financial statement to be filed with Registrar ........................................................... 264 138. Internal audit .......................................................................................................................... 266 Exception/ Modification/ Adaptation: ........................................................................................ 266

CHAPTER X AUDIT AND AUDITORS (Section 139-148) ................................................ 267 139. Appointment of auditors ........................................................................................................ 268 Exception/ Modification/ Adaptation: ........................................................................................ 270 140. Removal, resignation of auditor and giving of special notice ................................................. 272 Exception/ Modification/ Adaptation: ........................................................................................ 273 141. Eligibility, qualifications and disqualifications of auditors ...................................................... 275 Exception/ Modification/ Adaptation: ...................................................................................... 276 142. Remuneration of auditors ....................................................................................................... 277 143. Powers and duties of auditors and auditing standards .......................................................... 278 Exception/ Modification/ Adaptation: ........................................................................................ 281 144. Auditor not to render certain services .................................................................................... 283 145. Auditor to sign audit reports, etc............................................................................................ 284 146. Auditors to attend general meeting ....................................................................................... 285 147. Punishment for contravention ................................................................................................ 286 148. Central Government to specify audit of items of cost in respect of certain companies ........ 287

CHAPTER XI APPOINTMENT AND QUALIFICATIONS OF DIRECTORS (Section 149-172) ... 289 149. Company to have Board of Directors...................................................................................... 290 Exception/ Modification/ Adaptation: ........................................................................................ 292 150. Manner of selection of independent directors and maintenance of databank of independent directors .......................................................................................................................................... 294 Exception/ Modification/ Adaptation: ........................................................................................ 294 151. Appointment of director elected by small shareholders ........................................................ 295 152. Appointment of directors ....................................................................................................... 296 Exception/ Modification/ Adaptation: ........................................................................................ 297

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153. Application for allotment of Director Identification Number ................................................. 299 154. Allotment of Director Identification Number ......................................................................... 300 155. Prohibition to obtain more than one Director Identification Number ................................... 301 156. Director to intimate Director Identification Number ............................................................. 302 157. Company to inform Director Identification Number to Registrar .......................................... 303 158. Obligation to indicate Director Identification Number ........................................................... 304 159. Punishment for contravention ................................................................................................ 305 160. Right of persons other than retiring directors to stand for directorship................................ 306 Exception/ Modification/ Adaptation: ........................................................................................ 306 161. Appointment of additional director, alternate director and nominee director ..................... 307 Exception/ Modification/ Adaptation: ........................................................................................ 307 162. Appointment of directors to be voted individually ................................................................ 309 Exception/ Modification/ Adaptation: ........................................................................................ 309 163. Option to adopt principle of proportional representation for appointment of directors ...... 310 Exception/ Modification/ Adaptation: ........................................................................................ 310 164. Disqualifications for appointment of director ........................................................................ 311 Exception/ Modification/ Adaptation: ........................................................................................ 312 165. Number of directorships ......................................................................................................... 313 Exception/ Modification/ Adaptation: ........................................................................................ 314 166. Duties of directors................................................................................................................... 315 167. Vacation of office of director .................................................................................................. 316 168. Resignation of director............................................................................................................ 317 Exception/ Modification/ Adaptation: ........................................................................................ 317 169. Removal of directors ............................................................................................................... 318 170. Register of directors and key managerial personnel and their shareholding......................... 320 Exception/ Modification/ Adaptation: ........................................................................................ 320 171. Members’ right to inspect ...................................................................................................... 321 Exception/ Modification/ Adaptation: ........................................................................................ 321 172. Punishment ............................................................................................................................. 322

CHAPTER XII MEETINGS OF BOARD AND ITS POWERS (Section 173-195) .................... 323 173. Meetings of Board................................................................................................................... 324 Exception/ Modification/ Adaptation: ........................................................................................ 325 174. Quorum for meetings of Board ............................................................................................... 326 Exception/ Modification/ Adaptation: ........................................................................................ 326 175. Passing of resolution by circulation ........................................................................................ 328

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176. Defects in appointment of directors not to invalidate actions taken ..................................... 329 177. Audit Committee ..................................................................................................................... 330 Exception/ Modification/ Adaptation: ........................................................................................ 331 178. Nomination and Remuneration Committee and Stakeholders Relationship Committee ...... 332 Exception/ Modification/ Adaptation: ........................................................................................ 333 179. Powers of Board ...................................................................................................................... 334 Exception/ Modification/ Adaptation: ........................................................................................ 335 180. Restrictions on powers of Board............................................................................................. 336 Exception/ Modification/ Adaptation: ...................................................................................... 337 181. Company to contribute to bona fide and charitable funds, etc. ............................................ 338 182. Prohibitions and restrictions regarding political contributions .............................................. 339 183. Power of Board and other persons to make contributions to national defence fund, etc. ... 341 184. Disclosure of interest by director............................................................................................ 342 Exception/ Modification/ Adaptation: ...................................................................................... 343 185. Loan to directors, etc. ............................................................................................................. 344 Exception/ Modification/ Adaptation: ........................................................................................ 345 186. Loan and investment by company .......................................................................................... 346 Exception/ Modification/ Adaptation: ........................................................................................ 348 187. Investments of company to be held in its own name............................................................. 350 188. Related party transactions ...................................................................................................... 352 Exception/ Modification/ Adaptation: ........................................................................................ 353 189. Register of contracts or arrangements in which directors are interested ............................. 355 Exception/ Modification/ Adaptation: ........................................................................................ 355 190. Contract of employment with managing or whole-time directors......................................... 356 191. Payment to director for loss of office, etc., in connection with transfer of undertaking, property or shares .......................................................................................................................... 357 192. Restriction on non-cash transactions involving directors ....................................................... 359 193. Contract by One Person Company .......................................................................................... 360 194. Prohibition on forward dealings in securities of company by director or key managerial personnel ........................................................................................................................................ 361 195. Prohibition on insider trading of securities ............................................................................ 362

CHAPTER XIII APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL (Section 196205) ...................................................................................................................................... 363 196. Appointment of managing director, whole-time director or manager .................................. 364 Exception/ Modification/ Adaptation: ........................................................................................ 365

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197. Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits .................................................................................................................. 366 Exception/ Modification/ Adaptation: ........................................................................................ 368 198. Calculation of profits ............................................................................................................... 369 199. Recovery of remuneration in certain cases ............................................................................ 371 200. Central Government or company to fix limit with regard to remuneration........................... 372 201. Forms of, and procedure in relation to, certain applications ................................................. 373 202. Compensation for loss of office of managing or whole-time director or manager ................ 374 203. Appointment of key managerial personnel ............................................................................ 375 Exception/ Modification/ Adaptation: ........................................................................................ 376 204. Secretarial audit for bigger companies ................................................................................... 377 205. Functions of company secretary ............................................................................................. 378

CHAPTER XIV INSPECTION, INQUIRY AND INVESTIGATION (Section 206-229) .............. 379 206. Power to call for information, inspect books and conduct inquiries ...................................... 380 207. Conduct of inspection and inquiry .......................................................................................... 382 208. Report on inspection made..................................................................................................... 383 209. Search and seizure .................................................................................................................. 384 210. Investigation into affairs of company ..................................................................................... 385 211. Establishment of Serious Fraud Investigation Office .............................................................. 386 212. Investigation into affairs of Company by Serious Fraud Investigation Office......................... 387 213. Investigation into company’s affairs in other cases................................................................ 390 214. Security for payment of costs and expenses of investigation ................................................ 392 215. Firm, body corporate or association not to be appointed as inspector ................................. 393 216. Investigation of ownership of company ................................................................................. 394 217. Procedure, powers, etc., of inspectors ................................................................................... 395 218. Protection of employees during investigation........................................................................ 398 219. Power of inspector to conduct investigation into affairs of related companies, etc. ............ 399 220. Seizure of documents by inspector......................................................................................... 400 221. Freezing of assets of company on inquiry and investigation .................................................. 401 222. Imposition of restrictions upon securities .............................................................................. 402 223. Inspector’s report ................................................................................................................... 403 224. Actions to be taken in pursuance of inspector’s report ......................................................... 404 225. Expenses of investigation........................................................................................................ 406 226. Voluntary winding up of company, etc., not to stop investigation proceedings .................... 407 227. Legal advisers and bankers not to disclose certain information ............................................ 408 228. Investigation, etc., of foreign companies................................................................................ 409

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229. Penalty for furnishing false statement, mutilation, destruction of documents ..................... 410

CHAPTER XV COMPROMISES, ARRANGEMENTS AND AMALGAMATIONS (Section 230-240) ................................................................................................................................................ 411 230. Power to compromise or make arrangements with creditors and members ........................ 412 Exception/ Modification/ Adaptation: ........................................................................................ 415 231. Power of Tribunal to enforce compromise or arrangement .................................................. 416 Exception/ Modification/ Adaptation: ........................................................................................ 416 232. Merger and amalgamation of companies ............................................................................... 417 Exception/ Modification/ Adaptation: ........................................................................................ 420 233. Merger or amalgamation of certain companies ..................................................................... 421 234. Merger or amalgamation of company with foreign company................................................ 424 235. Power to acquire shares of shareholders dissenting from scheme or contract approved by majority ........................................................................................................................................... 425 236. Purchase of minority shareholding ......................................................................................... 427 237. Power of Central Government to provide for amalgamation of companies in public interest ........................................................................................................................................................ 429 238. Registration of offer of schemes involving transfer of shares ................................................ 431 239. Preservation of books and papers of amalgamated companies ............................................ 432 240. Liability of officers in respect of offences committed prior to merger, amalgamation, etc. . 433

CHAPTER XVI PREVENTION OF OPPRESSION AND MISMANAGEMENT (Section 241-246). 434 241. Application to Tribunal for relief in cases of oppression, etc. ................................................ 435 242. Powers of Tribunal .................................................................................................................. 436 243. Consequence of termination or modification of certain agreements .................................... 438 244. Right to apply under section 241 ............................................................................................ 439 245. Class action ............................................................................................................................. 440 246. Application of certain provisions to proceedings under section 241 or section 245 ............. 443

CHAPTER XVII REGISTERED VALUERS (Section 247) .................................................... 444 247. Valuation by registered valuers .............................................................................................. 445

CHAPTER XVIII REMOVAL OF NAMES OF COMPANIES FROM THE REGISTER OF COMPANIES (Section 248-252) ............................................................................................................................ 447 248. Power of Registrar to remove name of company from register of companies ...................... 448 249. Restrictions on making application under section 248 in certain situations .......................... 450 250. Effect of company notified as dissolved ................................................................................. 451 251. Fraudulent application for removal of name .......................................................................... 452 252. Appeal to Tribunal................................................................................................................... 453

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253. Determination of sickness [Omitted w.e.f. 15-11-2016] ........................................................ 455 254. Application for revival and rehabilitation [Omitted w.e.f. 15-11-2016] ................................. 456 255. Exclusion of certain time in computing period of limitation [Omitted w.e.f. 15-11-2016] .... 457 256. Appointment of interim administrator [Omitted w.e.f. 15-11-2016]..................................... 458 257. Committee of creditors [Omitted w.e.f. 15-11-2016] ............................................................ 459 258. Order of Tribunal [Omitted w.e.f. 15-11-2016] ...................................................................... 460 259. Appointment of administrator [Omitted w.e.f. 15-11-2016] ................................................. 461 260. Powers and duties of company administrator [Omitted w.e.f. 15-11-2016] ......................... 462 261. Scheme of revival and rehabilitation [Omitted w.e.f. 15-11-2016] ........................................ 463 262. Sanction of scheme [Omitted w.e.f. 15-11-2016]................................................................... 464 263. Scheme to be binding [Omitted w.e.f. 15-11-2016] ............................................................... 465 264. Implementation of scheme [Omitted w.e.f. 15-11-2016] ...................................................... 466 265. Winding up of company on report of company administrator [Omitted w.e.f. 15-11-2016] 467 266. Power of Tribunal to assess damages against delinquent directors, etc. [Omitted w.e.f. 15-112016] ............................................................................................................................................... 468 267. Punishment for certain offences [Omitted w.e.f. 15-11-2016] .............................................. 469 268. Bar of jurisdiction [Omitted w.e.f. 15-11-2016]...................................................................... 470 269. Rehabilitation and Insolvency Fund [Omitted w.e.f. 15-11-2016].......................................... 471

CHAPTER XX WINDING UP (Section 270-365) .......................................................... 472 270. Winding up by Tribunal ........................................................................................................... 473 271. Circumstances in which company may be wound up by Tribunal .......................................... 474 272. Petition for winding up ........................................................................................................... 475 273. Powers of Tribunal .................................................................................................................. 476 274. Directions for filing statement of affairs ................................................................................. 477 275. Company Liquidators and their appointments ....................................................................... 478 276. Removal and replacement of liquidator ................................................................................. 479 277. Intimation to Company Liquidator, provisional liquidator and Registrar ............................... 480 278. Effect of winding up order ...................................................................................................... 482 279. Stay of suits, etc., on winding up order .................................................................................. 483 280. Jurisdiction of Tribunal............................................................................................................ 484 281. Submission of report by Company Liquidator ........................................................................ 485 282. Directions of Tribunal on report of Company Liquidator ....................................................... 487 283. Custody of company's properties ........................................................................................... 488 284. Promoters, directors, etc., to cooperate with Company Liquidator....................................... 489 285. Settlement of list of contributories and application of assets................................................ 490 286. Obligations of directors and managers ................................................................................... 491

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287. Advisory committee ................................................................................................................ 492 288. Submission of periodical reports to Tribunal .......................................................................... 493 289. Power of Tribunal on application for stay of winding up [Omitted w.e.f. 15-11-2016] ......... 494 290. Powers and duties of Company Liquidator ............................................................................. 495 291. Provision for professional assistance to Company Liquidator ................................................ 497 292. Exercise and control of Company Liquidator's powers........................................................... 498 293. Books to be kept by Company Liquidator ............................................................................... 499 294. Audit of Company Liquidator's accounts ................................................................................ 500 295. Payment of debts by contributory and extent of set-off ........................................................ 501 296. Power of Tribunal to make calls.............................................................................................. 502 297. Adjustment of rights of contributories ................................................................................... 503 298. Power to order costs ............................................................................................................... 504 299. Power to summon persons suspected of having property of company, etc. ......................... 505 300. Power to order examination of promoters, directors, etc. .................................................... 506 301. Arrest of person trying to leave India or abscond .................................................................. 508 302. Dissolution of company by Tribunal ....................................................................................... 509 303. Appeals from orders made before commencement of Act .................................................... 510 304. Circumstances in which company may be wound up voluntarily [Omitted w.e.f. 15-11-2016] ........................................................................................................................................................ 511 305. Declaration of solvency in case of proposal to wind up voluntarily [Omitted w.e.f. 15-112016] ............................................................................................................................................... 512 306. Meeting of creditors [Omitted w.e.f. 15-11-2016] ................................................................. 513 307. Publication of resolution to wind up voluntarily [Omitted w.e.f. 15-11-2016] ...................... 514 308. Commencement of voluntary winding up [Omitted w.e.f. 15-11-2016] ................................ 515 309. Effect of voluntary winding up [Omitted w.e.f. 15-11-2016] ................................................. 516 310. Appointment of Company Liquidator [Omitted w.e.f. 15-11-2016] ....................................... 517 311. Power to remove and fill vacancy of Company Liquidator [Omitted w.e.f. 15-11-2016]....... 518 312. Notice of appointment of Company Liquidator to be given to Registrar [Omitted w.e.f. 15-112016] ............................................................................................................................................... 519 313. Cesser of Board's powers on appointment of Company Liquidator [Omitted w.e.f. 15-112016] ............................................................................................................................................... 520 314. Powers and duties of Company Liquidator in voluntary winding up [Omitted w.e.f. 15-112016] ............................................................................................................................................... 521 315. Appointment of committees [Omitted w.e.f. 15-11-2016] .................................................... 522 316. Company Liquidator to submit report on progress of winding up [Omitted w.e.f. 15-11-2016] ........................................................................................................................................................ 523

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317. Report of Company Liquidator to Tribunal for examination of persons [Omitted w.e.f. 15-112016] ............................................................................................................................................... 524 318. Final meeting and dissolution of company [Omitted w.e.f. 15-11-2016]............................... 525 319. Power of Company Liquidator to accept shares, etc., as consideration for sale of property of company [Omitted w.e.f. 15-11-2016] ........................................................................................... 526 320. Distribution of property of company [Omitted w.e.f. 15-11-2016] ........................................ 527 321. Arrangement when binding on company and creditors [Omitted w.e.f. 15-11-2016] .......... 528 322. Power to apply to Tribunal to have questions determined, etc. [Omitted w.e.f. 15-11-2016] ........................................................................................................................................................ 529 323. Costs of voluntary winding up [Omitted w.e.f. 15-11-2016] .................................................. 530 324. Debts of all descriptions to be admitted to proof .................................................................. 531 325. Application of insolvency rules in winding up of insolvent companies [Omitted w.e.f. 15-112016] ............................................................................................................................................... 532 326. Overriding preferential payments .......................................................................................... 533 327. Preferential payments ............................................................................................................ 535 328. Fraudulent preference ............................................................................................................ 538 329. Transfers not in good faith to be void .................................................................................... 539 330. Certain transfers to be void .................................................................................................... 540 331. Liabilities and rights of certain persons fraudulently preferred ............................................. 541 332. Effect of floating charge .......................................................................................................... 542 333. Disclaimer of onerous property .............................................................................................. 543 334. Transfers, etc., after commencement of winding up to be void ............................................ 545 335. Certain attachments, executions, etc., in winding up by Tribunal to be void ........................ 546 336. Offences by officers of companies in liquidation ................................................................... 547 337. Penalty for frauds by officers .................................................................................................. 549 338. Liability where proper accounts not kept ............................................................................... 550 339. Liability for fraudulent conduct of business ........................................................................... 551 340. Power of Tribunal to assess damages against delinquent directors, etc................................ 553 341. Liability under sections 339 and 340 to extend to partners or directors in firms or companies ........................................................................................................................................................ 554 342. Prosecution of delinquent officers and members of company .............................................. 555 343. Company Liquidator to exercise certain powers subject to sanction..................................... 556 344. Statement that company is in liquidation............................................................................... 557 345. Books and papers of company to be evidence ....................................................................... 558 346. Inspection of books and papers by creditors and contributories ........................................... 559 347. Disposal of books and papers of company ............................................................................. 560 348. Information as to pending liquidations................................................................................... 561

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349. Official Liquidator to make payments into public account of India ........................................ 563 350. Company Liquidator to deposit monies into scheduled bank ................................................ 564 351. Liquidator not to deposit monies into private banking account ............................................ 565 352. Company Liquidation Dividend and Undistributed Assets Account ....................................... 566 353. Liquidator to make returns, etc. ............................................................................................. 568 354. Meetings to ascertain wishes of creditors or contributories.................................................. 569 355. Court, tribunal or person, etc., before whom affidavit may be sworn ................................... 570 356. Powers of Tribunal to declare dissolution of company void .................................................. 571 357. Commencement of winding up by Tribunal ........................................................................... 572 358. Exclusion of certain time in computing period of limitation .................................................. 573 359. Appointment of Official Liquidator ......................................................................................... 574 360. Powers and functions of Official Liquidator............................................................................ 575 361. Summary procedure for liquidation ....................................................................................... 576 362. Sale of assets and recovery of debts due to company ........................................................... 577 363. Settlement of claims of creditors by Official Liquidator ......................................................... 578 364. Appeal by creditor................................................................................................................... 579 365. Order of dissolution of company ............................................................................................ 580

CHAPTER XXI PART I - COMPANIES AUTHORISED TO REGISTER UNDER THIS ACT (Section 366374) ...................................................................................................................................... 581 366. Companies capable of being registered.................................................................................. 582 367. Certificate of registration of existing companies .................................................................... 584 368. Vesting of property on registration ........................................................................................ 585 369. Saving of existing liabilities ..................................................................................................... 586 370. Continuation of pending legal proceedings ............................................................................ 587 371. Effect of registration under this Part ...................................................................................... 588 372. Power of Court to stay or restrain proceedings...................................................................... 590 373. Suits stayed on winding up order ........................................................................................... 591 374. Obligations of companies registering under this Part ............................................................ 592

CHAPTER XXI PART II - Winding up of unregistered companies (Section 375-378) . 593 375. Winding up of unregistered companies.................................................................................. 594 376. Power to wind up foreign companies, although dissolved ..................................................... 596 377. Provisions of Chapter cumulative ........................................................................................... 597 378. Saving and construction of enactments conferring power to wind up partnership firm, association or company, etc., in certain cases................................................................................ 598

CHAPTER XXII COMPANIES INCORPORATED OUTSIDE INDIA (Section 379-393) ........... 599 379. Application of Act to foreign companies ................................................................................ 600

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380. Documents, etc., to be delivered to Registrar by foreign companies .................................... 601 381. Accounts of foreign company ................................................................................................. 602 382. Display of name, etc., of foreign company ............................................................................. 603 383. Service on foreign company.................................................................................................... 604 384. Debentures, annual return, registration of charges, books of account and their inspection 605 Exception/ Modification/ Adaptation: ........................................................................................ 605 385. Fee for registration of documents .......................................................................................... 607 386. Interpretation.......................................................................................................................... 608 387. Dating of prospectus and particulars to be contained therein............................................... 609 388. Provisions as to expert’s consent and allotment .................................................................... 611 389. Registration of prospectus ...................................................................................................... 612 390. Offer of Indian Depository Receipts........................................................................................ 613 391. Application of sections 34 to 36 and Chapter XX .................................................................... 614 392. Punishment for contravention ................................................................................................ 615 393. Company's failure to comply with provisions of this Chapter not to affect validity of contracts, etc. .................................................................................................................................................. 616

CHAPTER XXIII GOVERNMENT COMPANIES (Section 394-395) .................................... 617 394. Annual reports on Government companies ........................................................................... 618 395. Annual reports where one or more State Governments are members of companies ........... 619

CHAPTER XXIV REGISTRATION OFFICES AND FEES (Section 396-404)......................... 620 396. Registration offices ................................................................................................................. 621 397. Admissibility of certain documents as evidence ..................................................................... 622 398. Provisions relating to filing of applications, documents, inspection, etc., in electronic form 623 399. Inspection, production and evidence of documents kept by Registrar .................................. 625 400. Electronic form to be exclusive, alternative or in addition to physical form.......................... 626 401. Provision of value added services through electronic form ................................................... 627 402. Application of provisions of Information Technology Act, 2000 ............................................ 628 403. Fee for filing, etc. .................................................................................................................... 629 Exception/ Modification/ Adaptation: ........................................................................................ 629 404. Fees, etc., to be credited into public account ......................................................................... 630

CHAPTER XXV COMPANIES TO FURNISH INFORMATION OR STATISTICS (Section 405)...... 631 405. Power of Central Government to direct companies to furnish information or statistics ....... 632

CHAPTER XXVI NIDHIS (Section 406) ........................................................................ 633 406. Power to modify Act in its application to Nidhis .................................................................... 634

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CHAPTER XXVII NATIONAL COMPANY LAW TRIBUNAL AND APPELLATE TRIBUNAL (Section 407-434) ............................................................................................................................ 635 407. Definitions ............................................................................................................................... 636 408. Constitution of National Company Law Tribunal .................................................................... 637 409. Qualification of President and Members of Tribunal ............................................................. 639 410. Constitution of Appellate Tribunal.......................................................................................... 640 411. Qualifications of chairperson and Members of Appellate Tribunal ....................................... 641 412. Selection of Members of Tribunal and Appellate Tribunal ..................................................... 642 413. Term of office of President, chairperson and other Members ............................................... 643 414. Salary, allowances and other terms and conditions of service of Members .......................... 644 415. Acting President and Chairperson of Tribunal or Appellate Tribunal ..................................... 645 416. Resignation of Members ......................................................................................................... 646 417. Removal of Members .............................................................................................................. 647 418. Staff of Tribunal and Appellate Tribunal ................................................................................. 648 419. Benches of Tribunal ................................................................................................................ 649 420. Orders of Tribunal ................................................................................................................... 650 421. Appeal from orders of Tribunal .............................................................................................. 651 422. Expeditious disposal by Tribunal and Appellate Tribunal ....................................................... 652 423. Appeal to Supreme Court ....................................................................................................... 653 424. Procedure before Tribunal and Appellate Tribunal ................................................................ 654 425. Power to punish for contempt ................................................................................................ 656 426. Delegation of powers .............................................................................................................. 657 427. President, Members, officers, etc., to be public servants ...................................................... 658 428. Protection of action taken in good faith ................................................................................. 659 429. Power to seek assistance of Chief Metropolitan Magistrate, etc. .......................................... 660 430. Civil court not to have jurisdiction .......................................................................................... 661 431. Vacancy in Tribunal or Appellate Tribunal not to invalidate acts or proceedings .................. 662 432. Right to legal representation .................................................................................................. 663 433. Limitation ................................................................................................................................ 664 434. Transfer of certain pending proceedings ................................................................................ 665

CHAPTER XXVIII SPECIAL COURTS (Section 435-446) ............................................... 667 435. Establishment of Special Courts.............................................................................................. 668 436. Offences triable by Special Courts .......................................................................................... 670 437. Appeal and revision................................................................................................................. 672 438. Application of Code to proceedings before Special Court ...................................................... 673

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439. Offences to be noncognizable ................................................................................................ 674 Exception/ Modification/ Adaptation: ........................................................................................ 674 440. Transitional provisions ............................................................................................................ 675 441. Compounding of certain offences........................................................................................... 676 442. Mediation and Conciliation Panel ........................................................................................... 678 443. Power of Central Government to appoint company prosecutors .......................................... 679 444. Appeal against acquittal.......................................................................................................... 680 445. Compensation for accusation without reasonable cause....................................................... 681 446. Application of fines ................................................................................................................. 682

CHAPTER XXIX MISCELLANEOUS (Section 447-470) .................................................. 683 447. Punishment for fraud .............................................................................................................. 684 448. Punishment for false statement ............................................................................................. 685 449. Punishment for false evidence................................................................................................ 686 450. Punishment where no specific penalty or punishment is provided ....................................... 687 451. Punishment in case of repeated default ................................................................................. 688 452. Punishment for wrongful withholding of property ................................................................ 689 453. Punishment for improper use of “Limited” or “Private Limited” ........................................... 690 454. Adjudication of penalties ........................................................................................................ 691 455. Dormant company .................................................................................................................. 692 456. Protection of action taken in good faith ................................................................................. 693 457. Nondisclosure of information in certain cases ....................................................................... 694 458. Delegation by Central Government of its powers and functions ........................................... 695 459. Powers of Central Government or Tribunal to accord approval, etc., subject to conditions and to prescribe fees on applications .................................................................................................... 696 460. Condonation of delay in certain cases .................................................................................... 697 461. Annual report by Central Government ................................................................................... 698 462. Power to exempt class or classes of companies from provisions of this Act ......................... 699 463. Power of court to grant relief in certain cases........................................................................ 700 464. Prohibition of association or partnership of persons exceeding certain number .................. 701 465. Repeal of certain enactments and savings ............................................................................. 702 466. Dissolution of Company Law Board and consequential provisions ........................................ 704 467. Power of Central Government to amend Schedules .............................................................. 706 468. Powers of Central Government to make rules relating to winding up ................................... 707 469. Power of Central Government to make rules ......................................................................... 708 470. Power to remove difficulties ................................................................................................... 709

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PART-IXA of Companies Act 1956 PRODUCER COMPANIES (Section 581A-581ZL) ................................................................................................................................................ 710 CHAPTER I: PRODUCER COMPANIES............................................................................................... 711 581A. DEFINITIONS ..................................................................................................................... 711 CHAPTER II: INCORPORATION OF PRODUCER COMPANIES AND OTHER MATTERS ....................... 712 581B. OBJECTS OF PRODUCER COMPANY .................................................................................. 712 581C. FORMATION OF PRODUCER COMPANY AND ITS REGISTRATION..................................... 713 581D. MEMBERSHIP AND VOTING RIGHTS OF MEMBERS OF PRODUCER COMPANY ............... 714 581E. BENEFITS TO MEMBERS .................................................................................................... 714 581F. MEMORANDUM OF PRODUCER COMPANY...................................................................... 715 581G. ARTICLES OF ASSOCIATION............................................................................................... 715 581H. AMENDMENT OF MEMORANDUM .................................................................................. 717 581-I. AMENDMENT OF ARTICLES .............................................................................................. 717 581J. OPTION TO INTER-STATE CO-OPERATIVE SOCIETIES TO BECOME PRODUCER COMPANIES .................................................................................................................................................... 718 581K. EFFECT OF INCORPORATION OF PRODUCER COMPANY .................................................. 719 581L. VESTING OF UNDERTAKING IN PRODUCER COMPANY ..................................................... 719 581M. CONCESSION, ETC., TO BE DEEMED TO HAVE BEEN GRANTED TO PRODUCER COMPANY .................................................................................................................................................... 720 581N. PROVISIONS IN RESPECT OF OFFICERS AND OTHER EMPLOYEES OF INTER-STATE COOPERATIVE SOCIETY .................................................................................................................... 720 CHAPTER III: MANAGEMENT OF PRODUCER COMPANY ................................................................ 721 581-O. NUMBER OF DIRECTORS ................................................................................................. 721 581P. APPOINTMENT OF DIRECTORS ......................................................................................... 721 581Q. VACATION OF OFFICE BY DIRECTORS ............................................................................... 722 581R. POWERS AND FUNCTIONS OF BOARD .............................................................................. 722 581S. MATTERS TO BE TRANSACTED AT GENERAL MEETING ..................................................... 723 581T. LIABILITY OF DIRECTORS ................................................................................................... 723 581U. COMMITTEE OF DIRECTORS ............................................................................................. 724 581V. MEETINGS OF BOARD AND QUORUM .............................................................................. 724 581W. CHIEF EXECUTIVE AND HIS FUNCTIONS .......................................................................... 725 581X. SECRETARY OF PRODUCER COMPANY .............................................................................. 726 581Y. QUORUM........................................................................................................................... 726 581Z. VOTING RIGHTS ................................................................................................................. 726 CHAPTER IV: GENERAL MEETINGS .................................................................................................. 726 581ZA. ANNUAL GENERAL MEETINGS ........................................................................................ 726

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CHAPTER V: SHARE CAPITAL AND MEMBERS RIGHTS .................................................................... 728 581ZB. SHARE CAPITAL ............................................................................................................... 728 581ZC. SPECIAL USER RIGHTS ..................................................................................................... 728 581ZD. TRANSFERABILITY OF SHARES AND ATTENDANT RIGHTS............................................... 728 CHAPTER VI: FINANCE, ACCOUNTS AND AUDIT.............................................................................. 729 581ZE. BOOKS OF ACCOUNT ....................................................................................................... 729 581ZF. INTERNAL AUDIT ............................................................................................................. 729 581ZG. DUTIES OF AUDITOR UNDER THIS PART ......................................................................... 729 581ZH. DONATIONS OR SUBSCRIPTION BY PRODUCER COMPANY ............................................ 730 581ZI. GENERAL AND OTHER RESERVES ..................................................................................... 730 581ZJ. ISSUE OF BONUS SHARES ................................................................................................. 730 CHAPTER VII: LOANS TO MEMBERS AND INVESTMENTS................................................................ 730 581ZK. LOAN, ETC., TO MEMBERS .............................................................................................. 730 581ZL. INVESTMENT IN OTHER COMPANIES, FORMATION OF SUBSIDIARIES, ETC.................... 731

SCHEDULE – I ....................................................................................................................... 732 TABLE –A ......................................................................................................................................... 733 MEMORANDUM OF ASSOCIATION OF A COMPANY LIMITED BY SHARES .................................. 733 TABLE -B .......................................................................................................................................... 735 MEMORANDUM OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL ........................................................................................................................ 735 TABLE -C .......................................................................................................................................... 737 MEMORANDUM OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND HAVING A SHARE CAPITAL ........................................................................................................................... 737 TABLE -D .......................................................................................................................................... 739 MEMORANDUM OF ASSOCIATION OF AN UNLIMITED COMPANY AND NOT HAVING SHARE CAPITAL ....................................................................................................................................... 739 TABLE -E .......................................................................................................................................... 741 MEMORANDUM OF ASSOCIATION OF AN UNLIMITED COMPANY AND HAVING SHARE CAPITAL .................................................................................................................................................... 741 TABLE -F .......................................................................................................................................... 743 ARTICLES OF ASSOCIATION OF A COMPANY LIMITED BY SHARES.............................................. 743 TABLE – G ........................................................................................................................................ 759 ARTICLES OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND HAVING A SHARE CAPITAL ....................................................................................................................................... 759 TABLE - H ......................................................................................................................................... 760 ARTICLES OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL ....................................................................................................................................... 760

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TABLE – I.......................................................................................................................................... 765 ARTICLES OF ASSOCIATION OF AN UNLIMITED COMPANY AND HAVING A SHARE CAPITAL ..... 765 TABLE - J .......................................................................................................................................... 766 ARTICLES OF ASSOCIATION OF AN UNLIMITED COMPANY AND NOT HAVING SHARE CAPITAL 766

SCHEDULE – II ...................................................................................................................... 767 USEFUL LIVES TO COMPUTE DEPRECIATION .................................................................................. 768 PART ‘A’ ....................................................................................................................................... 768 PART ‘B’ ....................................................................................................................................... 771 PART ‘C’ ....................................................................................................................................... 772

SCHEDULE – III ..................................................................................................................... 777 Division I .......................................................................................................................................... 778 GENERAL INSTURCTIONS FOR PREPARATION OF BALANCE SHEET AND STATEMENT OF PROFIT AND LOSS OF A COMPANY”. ....................................................................................................... 778 PART I — BALANCE SHEET........................................................................................................... 780 PART II – STATEMENT OF PROFIT AND LOSS .............................................................................. 793 Division II ......................................................................................................................................... 800 GENERAL INSTURCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS OF A COMPANY REQUIRED TO COMPLY WITH Ind AS .......................................................................................... 800 PART I –BALANCE SHEET ............................................................................................................. 802 PART II – STATEMENT OF PROFIT AND LOSS .............................................................................. 818

SCHEDULE – IV ..................................................................................................................... 824 CODE FOR INDEPENDENT DIRECTORS ............................................................................................ 825

SCHEDULE – V ...................................................................................................................... 830 PART I .............................................................................................................................................. 831 APPOINTMENTS.......................................................................................................................... 831 PART II ............................................................................................................................................. 833 REMUNERATION......................................................................................................................... 833 PART III ............................................................................................................................................ 839 Provisions applicable to Parts I and II of this Schedule............................................................. 839 PART IV ............................................................................................................................................ 840

SCHEDULE – VI ..................................................................................................................... 841 SCHEDULE - VII .................................................................................................................... 844 Notified Rules .................................................................................................................. 847 The Companies (Specification of Definitions Details) Rules, 2014 ................................................. 848 1. Short title and commencement: ............................................................................................ 848

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2. Definitions: ............................................................................................................................. 848 3. Related party: ......................................................................................................................... 850 4. List of relatives in terms of clause (77) of section 2: ............................................................. 850 The Companies (Incorporation) Rules, 2014 .................................................................................. 851 1. Short title and commencement: ............................................................................................ 851 2. Definitions: ............................................................................................................................. 851 3. One Person Company: ............................................................................................................ 851 4. Nomination by the subscriber or member of One Person Company: .................................. 852 5. Penalty: [Omitted w.e.f. 01.05.2015] .................................................................................... 853 6. One Person Company to convert itself into a public company or a private company in certain cases: .............................................................................................................................. 853 7. Conversion of private company into One Person Company: ................................................ 854 7A. Penalty: ................................................................................................................................ 855 8. Undesirable names:................................................................................................................ 855 9. Reservation of name: ............................................................................................................. 860 10. Where Articles Contains Entrenchment Provisions: ............................................................. 860 11. Model Articles ....................................................................................................................... 860 12. Application for incorporation of companies: ...................................................................... 861 13. Signing of memorandum and articles:................................................................................. 861 14. Declaration by professionals: .............................................................................................. 862 15. Affidavit from subscribers and first directors: .................................................................... 862 16. Particulars of every subscriber to be filed with the Registrar at the time of incorporation: .................................................................................................................................................... 863 17. Particulars of first directors of the company and their consent to act as such: ................ 865 18. Certificate of incorporation: ................................................................................................ 865 19. License under section 8 for new companies with charitable objects etc.:......................... 865 20. License for existing companies: ........................................................................................... 866 21. Conditions for conversion of a company registered under Section 8 into a company of any other kind: .................................................................................................................................. 867 22. Other conditions to be complied with by companies registered under section 8 seeking conversion into any other kind: ................................................................................................. 868 23. Intimation to Registrar of revocation of licence issued under section 8: .......................... 870 24. Declaration at the time of commencement of business: [Omitted w.e.f. 29-05-2015] .... 870 25. Verification of registered office: .......................................................................................... 870 26. Publication of name by company: ....................................................................................... 870 27. Notice and verification of change of situation of the registered office: ............................ 871 28. Shifting of registered office within the same State: ........................................................... 871

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29. Alteration of Memorandum by change of name: ............................................................... 871 30. Shifting of registered office from one State or Union territory to another State: ............ 871 31. Certified Copy of Central Government's Order ................................................................... 874 32. Change of objects for which money is raised through prospectus. ................................... 874 33. Alteration of articles: ........................................................................................................... 874 34. Copies of memorandum and articles, etc. to be given to members on request being made by them: ...................................................................................................................................... 875 35. Service of documents: .......................................................................................................... 875 36. Integrated Process for Incorporation [Omitted w.e.f. 01.01.2017] ................................... 876 37. Conversion of unlimited liability company into a limited liability company by shares or guarantee: .................................................................................................................................. 876 38. Simplified Proforma for Incorporating Company Electronically (SPICe): ........................... 878 39. Conversion of a company limited by guarantee into a company limited by shares:......... 880 The Companies (Prospectus and Allotment of Securities) Rules, 2014 .......................................... 881 1. Short title and commencement: ............................................................................................ 881 2. Definitions: ............................................................................................................................. 881 3. Information to be stated in the prospectus: ......................................................................... 881 4. Reports to be set out in the Prospectus: ............................................................................... 884 5. Other matters and reports to be stated in the prospectus: ................................................. 885 6. Period for which information to be provided in certain cases: ............................................ 888 7. Variation in terms of contracts referred to in the prospectus or objects for which prospectus was issued: .............................................................................................................. 888 8. Offer of Sale by Members: ..................................................................................................... 889 9. Dematerialisation of securities: ............................................................................................. 889 10. Shelf prospectus and Information Memorandum: ............................................................. 889 11. Refund of Application Money: ............................................................................................. 889 12. Return of Allotment: ............................................................................................................ 890 13. Payment of commission: ...................................................................................................... 890 14. Private Placement: ............................................................................................................... 891 The Companies (Issue of Global Depository Receipts) Rules, 2014 ................................................ 894 1. Short Title and Commencement: ............................................................................................ 894 2. Definitions: .............................................................................................................................. 894 3. Eligibility to Issue Depository Receipts: .................................................................................. 894 4. Conditions for Issue of Depository Receipts: .......................................................................... 894 5. Manner and Form of Depository Receipts: ............................................................................. 895 6. Voting Rights: .......................................................................................................................... 895

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7. Proceeds of Issue: ................................................................................................................... 895 8. Depository Receipts Prior to Commencement: ...................................................................... 895 9. Non-Applicability of Certain Provisions of the Act:................................................................. 895 The Companies (Share Capital and Debentures) Rules, 2014 ........................................................ 897 1. Short title and commencement: ............................................................................................ 897 2. Definitions: ............................................................................................................................. 897 3. Application: ............................................................................................................................ 898 4. Equity shares with differential rights: ................................................................................... 898 5. Certificate of shares (where shares are not in demat form): ............................................... 900 6. Issue of renewed or duplicate share certificate: ................................................................... 902 7. Maintenance of share certificate forms and related books and documents: ...................... 903 8. Issue of sweat equity shares: ................................................................................................. 903 9. Issue and redemption of preference shares: ........................................................................ 907 10. Issue and redemption of preference shares by company in infrastructural projects: ...... 908 11. Instrument of transfer: ........................................................................................................ 908 12. Issue of employee stock options: ........................................................................................ 908 13. Issue of shares on preferential basis: .................................................................................. 912 14. Issue of Bonus Shares:.......................................................................................................... 915 15. Notice to Registrar for alteration of share capital: ............................................................. 915 16. Provision of Money by Company for Purchase of its Own Shares by Employees or by Trustees for the Benefit of Employees: ..................................................................................... 915 17. Buy-back of shares or other securities: ............................................................................... 917 18. Debentures: .......................................................................................................................... 921 19. Nomination by securities holders: ....................................................................................... 926 The National Company Law Tribunal (Procedure for reduction of share capital of Company) Rules, 2016 ................................................................................................................................................ 928 1. Short title and Commencement: ........................................................................................... 928 2. Form of application or petition for Reduction of share capital under section 66: .............. 928 3. Issue of notice and directions by the National Company Law Tribunal: .............................. 929 4. Representation by Central Government, Registrar etc. under sub-section (2) of section 66: .................................................................................................................................................... 929 5. Procedure with regard to representations and objections received: .................................. 930 6. Order on application and Minute thereof: ............................................................................ 930 The Companies (Acceptance of Deposits) Rules, 2014 ................................................................... 931 1. Short title, commencement and application: ....................................................................... 931 2. Definitions: ............................................................................................................................. 931

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3. Terms and conditions of acceptance of deposits by companies: ......................................... 937 4. Form and particulars of advertisements or circulars: ........................................................... 939 5. Manner and extent of deposit insurance: ............................................................................. 940 6. Creation of security: ............................................................................................................... 941 7. Appointment of trustee for depositors: ................................................................................ 941 8. Duties of trustees: .................................................................................................................. 942 9. Meeting of depositors: ........................................................................................................... 942 10. Form of application for deposits: ........................................................................................ 943 11. Power to nominate: ............................................................................................................. 943 12. Furnishing of deposit receipts to depositors: ...................................................................... 943 13. Maintenance of liquid assets and creation of deposit repayment reserve account: ........ 943 14. Registers of deposits: ........................................................................................................... 943 15. General provisions regarding premature repayment of deposits: ..................................... 944 16. Return of deposits to be filed with the Registrar:............................................................... 945 16A. Disclosures in the financial statement: ............................................................................. 945 17. Penal rate of interest: .......................................................................................................... 945 18. Power of Central Government to decide certain questions: .............................................. 945 19. Applicability of sections 73 and 74 to eligible companies: ................................................. 945 20. Statement regarding deposits existing as on the date of commencement of the Act: ..... 945 21. Punishment for contravention: ........................................................................................... 946 The Companies (Registration of Charges) Rules, 2014 ................................................................... 947 1. Short title and commencement: ............................................................................................ 947 2. Definitions: ............................................................................................................................. 947 3. Registration of creation or modification of charge: .............................................................. 947 4. Condonation of delay by Registrar: ....................................................................................... 948 5. Application of rules in certain matters: ................................................................................. 948 6. Certificate of registration: ...................................................................................................... 948 7. Register of charges to be kept by the Registrar: ................................................................... 949 8. Satisfaction of charge: ............................................................................................................ 949 9. Intimation of appointment of Receiver or Manager: ........................................................... 949 10. Company’s register of charges: ............................................................................................ 949 11. Register open for inspection: ............................................................................................... 949 12. Condonation of delay and rectification of register of charges: .......................................... 949 The Companies (Management and Administration) Rules, 2014 ................................................... 951 1. Short title and commencement: ............................................................................................ 951 2. Definitions: ............................................................................................................................. 951

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3. Register of members: ............................................................................................................. 951 4. Register of debenture holders or any other security holders: ............................................. 952 5. Maintenance of the Register of members etc. under section 88: ........................................ 952 6. Index of names to be included in Register: ........................................................................... 953 7. Foreign register of members, debenture holders, other security holders or beneficial owners residing outside India:................................................................................................... 954 8. Authentication:....................................................................................................................... 955 9. Declaration in respect of beneficial interest in any shares: ................................................. 955 10. Closure of register of members or debenture holders or other security holders: ............ 956 11. Annual Return: ..................................................................................................................... 956 12. Extract of annual return: ...................................................................................................... 956 13. Return of changes in shareholding position of promoters and top ten shareholders: ..... 956 14. Inspection of registers, returns etc.:.................................................................................... 957 15. Preservation of register of members etc. and annual return: ............................................ 957 16. Copies of the registers and annual return: .......................................................................... 957 17. Calling of Extraordinary general meeting by requisitionists: ............................................. 958 18. Notice of the meeting: ......................................................................................................... 958 19. Proxies: ................................................................................................................................. 960 20. Voting though electronic means:......................................................................................... 960 21. Manner in which the Chairman of meeting shall get the poll process scrutinised and report thereon: ...................................................................................................................................... 965 22. Procedure to be followed for conducting business through postal ballot:........................ 966 23. Special Notice: ...................................................................................................................... 968 24. Resolutions and agreements to be filed:............................................................................. 969 25. Minutes of proceedings of general meeting, meeting of Board of Directors and other meetings and resolutions passed by postal ballot: ................................................................... 969 26. Copy of minute book of general meeting:........................................................................... 970 27. Maintenance and inspection of document in electronic form: .......................................... 970 28. Security of records maintained in electronic form: ............................................................ 971 29. Inspection and copies of records maintained in electronic form: ...................................... 972 30. Penalty: ................................................................................................................................. 972 31. Report on Annual General Meeting: ................................................................................... 972 The Companies (Declaration and Payment of Dividend) Rules, 2014 ............................................ 973 1. Short title and commencement: ............................................................................................ 973 2. Definitions: ............................................................................................................................. 973 3. Declaration of dividend out of reserves: ............................................................................... 973

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The Investor Education and Protection Fund Authority (Appointment of Chairperson and Members, holding of meetings and provision for offices and officers) Rules, 2016 ...................... 975 1. Short title, extent and commencement: ............................................................................... 975 2. Definitions: ............................................................................................................................. 975 3. Establishment of the Authority: ............................................................................................ 976 4. Composition of the Authority: ............................................................................................... 976 5. Chairperson of the Authority: ................................................................................................ 976 6. Chief Executive Officer of the Authority: .............................................................................. 977 7. Members of the Authority: .................................................................................................... 977 8. The term of office of members of the Authority: ................................................................. 977 9. The number of officers and employees of the Authority: .................................................... 978 10. Functions of the Authority: .................................................................................................. 978 11. Meetings: .............................................................................................................................. 979 12. Member not to participate in meetings in certain cases: ................................................... 979 13. Vacancies, etc., not to invalidate proceedings of Authority:.............................................. 979 14. Protection of action taken in good faith: ............................................................................ 980 The Investor Education and Protection Fund Authority (Recruitment, Salary and other Terms and Conditions of Service of General Manager and Assistant General Manager) Rules, 2017 ............. 982 1. Short title and commencement: ............................................................................................ 982 2. Definitions: ............................................................................................................................. 982 3. Application: ............................................................................................................................ 982 4. Number of posts, classification and level in the pay matrix:................................................ 982 5. Method of recruitment, eligibility etc.: ................................................................................. 982 6. Procedure for appointment on deputation:.......................................................................... 982 7. Period of deputation: ............................................................................................................. 983 8. Conditions of service: ............................................................................................................. 983 9. Accommodation: .................................................................................................................... 983 10. Disciplinary Proceedings: ..................................................................................................... 983 11. Disqualification:.................................................................................................................... 983 12. Power to relax: ..................................................................................................................... 984 The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 ...................................................................................................................................... 985 1. Short title, extent and commencement: ............................................................................... 985 2. Definitions: ............................................................................................................................. 985 3. Fund: ....................................................................................................................................... 986 4. Accounts and audit:................................................................................................................ 987

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5. Statement to be furnished to the Fund: ................................................................................ 987 6. Manner of transfer of shares under sub-section (6) of section 124 to the Fund: ................ 989 7. Refunds to claimants from Fund:........................................................................................... 991 8. Power to direct payment of amount due to the Fund: ......................................................... 992 9. Transfer of assets, liabilities, etc., of the existing IEPF to the Authority: ............................ 993 10. Returns and reports: ............................................................................................................ 993 11. Protection of action taken in good faith: ............................................................................ 993 12. Repeal and savings: .............................................................................................................. 993 The Companies (Accounts) Rules, 2014 .......................................................................................... 995 1. Short title and commencement: ............................................................................................ 995 2. Definitions: ............................................................................................................................. 995 3. Manner of books of account to be kept in electronic mode: ............................................... 996 4. Conditions regarding maintenance and inspection of certain financial information by directors:..................................................................................................................................... 996 4A. Forms and items contained in Financial Statements:......................................................... 997 5. Form of Statement containing salient features of financial statements of subsidiaries: .... 997 6. Manner of consolidation of accounts: ................................................................................... 997 7. Transitional provisions with respect to Accounting Standards: ........................................... 998 8. Matters to be included in Board’s report: ............................................................................. 998 9. Disclosures about CSR Policy: .............................................................................................. 1000 10. Statement containing salient features of financial statements: ...................................... 1000 11. Manner of circulation of financial statements in certain cases: ...................................... 1000 12. Filing of financial statements and fees to be paid thereon: ............................................. 1000 13. Companies required to appoint internal auditor: ............................................................. 1001 The Companies (Indian Accounting Standards) Rules, 2015 ........................................................ 1002 1. Short title and commencement: .......................................................................................... 1002 2. Definitions: ........................................................................................................................... 1002 3. Applicability of Accounting Standards: ............................................................................... 1003 4. Obligation to comply with Indian Accounting Standards (Ind AS): .................................... 1003 5. Exemptions: .......................................................................................................................... 1005 The Companies (Corporate Social Responsibility Policy) Rules, 2014 .......................................... 1006 1. Short title and commencement: .......................................................................................... 1006 2. Definitions: ........................................................................................................................... 1006 3. Corporate Social Responsibility: .......................................................................................... 1007 4. CSR Activities: ....................................................................................................................... 1007 5. CSR Committees: .................................................................................................................. 1008

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6. CSR Policy: ............................................................................................................................ 1008 7. CSR Expenditure: .................................................................................................................. 1009 8. CSR Reporting: ...................................................................................................................... 1009 9. Display of CSR activities on its website: .............................................................................. 1009 The Companies (Audit and Auditors) Rules, 2014 ........................................................................ 1011 1. Short title and commencement: .......................................................................................... 1011 2. Definitions: ........................................................................................................................... 1011 3. Manner and procedure of selection and appointment of auditors: .................................. 1011 4. Conditions for appointment and notice to Registrar: ......................................................... 1012 5. Class of Companies:.............................................................................................................. 1013 6. Manner of rotation of auditors by the companies on expiry of their term: ...................... 1013 7. Removal of the auditor before expiry of his term: ............................................................. 1015 8. Resignation of auditor:......................................................................................................... 1015 9. Liability to devolve on concerned partners only: ................................................................ 1015 10. Disqualifications of auditor:............................................................................................... 1015 10A. Rule:.................................................................................................................................. 1016 11. Other matters to be included in auditor’s report: ............................................................ 1016 12. Duties and powers of the company’s auditor with reference to the audit of the branch and the branch auditor: .................................................................................................................. 1017 13. Reporting of frauds by auditor and other matters: .......................................................... 1017 14. Remuneration of the Cost Auditor: ................................................................................... 1018 The Companies (Cost Records and Audit) Rules, 2014 ................................................................. 1019 1. Short title and commencement: .......................................................................................... 1019 2. Definitions: ........................................................................................................................... 1019 3. Application of cost records: ................................................................................................. 1020 4. Applicability for cost audit: .................................................................................................. 1024 5. Maintenance of records: ...................................................................................................... 1024 6. Cost audit: ............................................................................................................................. 1025 7. Rules not to apply in certain cases: [Omitted w.e.f. 31.12.2014] ...................................... 1025 The Companies (Appointment and Qualification of Directors) Rules, 2014................................. 1026 1. Short title and commencement: .......................................................................................... 1026 2. Definitions: ........................................................................................................................... 1026 3. Woman director on the Board: ............................................................................................ 1027 4. Number of independent directors: ...................................................................................... 1027 5. Qualifications of independent director: .............................................................................. 1028

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6. Creation and maintenance of databank of persons offering to become independent directors:................................................................................................................................... 1028 7. Small shareholders’ director: ............................................................................................... 1030 8. Consent to act as director: ................................................................................................... 1031 9. Application for allotment of Director Identification Number: ........................................... 1031 10. Allotment of DIN: ............................................................................................................... 1032 10A. Intimation of DIN to Company: ....................................................................................... 1033 11. Cancellation or surrender or Deactivation of DIN:............................................................ 1033 12. Intimation of changes in particulars specified in DIN application: ................................... 1034 13. Notice of candidature of a person for directorship: ......................................................... 1035 14. Disqualification of directors sub-section (2) of section 164: ............................................ 1035 15. Notice of resignation of director: ...................................................................................... 1035 16. Copy of resignation of director to be forwarded by him: ................................................. 1035 17. Register of directors and key managerial personnel: ....................................................... 1035 18. Return containing the particulars of directors and the key managerial personnel: ........ 1036 The Companies (Meetings of Board and its Powers) Rules, 2014 ................................................ 1038 1. Short title and commencement: .......................................................................................... 1038 2. Definitions: ........................................................................................................................... 1038 3. Meetings of Board through video conferencing or other audio visual means: ................. 1038 4. Matters not to be dealt with in a meeting through video conferencing or other audio visual means: ...................................................................................................................................... 1041 5. Passing of resolution by circulation: .................................................................................... 1042 6. Committees of the Board: .................................................................................................... 1042 6A. Omnibus approval for related party transactions on annual basis: ................................ 1042 7. Establishment of vigil mechanism: ...................................................................................... 1043 8. Powers of Board: .................................................................................................................. 1044 9. Disclosures by a director of his interest: ............................................................................. 1044 10. Loans to Director etc. under section 185: [Omitted w.e.f. 14.12.2015] ........................... 1045 11. Loan and investment by a company under section 186 of the Act: ................................. 1045 12. Register: .............................................................................................................................. 1045 13. Special Resolution: ............................................................................................................. 1046 14. Investments of company to be held in its own name: ...................................................... 1046 15. Contract or arrangement with a related party:................................................................. 1046 16. Register of contracts or arrangements in which directors are interested: ...................... 1048 17. Payment to director for loss of office, etc. in connection with transfer of undertaking, property or shares: ................................................................................................................... 1049

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The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 ......... 1055 1. Short title and commencement: .......................................................................................... 1055 2. Definitions: ........................................................................................................................... 1055 3. Filing of return of appointment: .......................................................................................... 1055 4. Sitting fees: ........................................................................................................................... 1056 5. Disclosure in Board’s report:................................................................................................ 1056 6. Applications to the Central Government: ........................................................................... 1058 7. Fees: ...................................................................................................................................... 1058 8. Appointment of Key Managerial Personnel: ....................................................................... 1059 8A. Appointment of Company Secretaries in companies not covered under rule 8: ............ 1059 9. Secretarial Audit Report:...................................................................................................... 1059 10. Duties of Company Secretary: ........................................................................................... 1059 The Companies (Inspection, Investigation and Inquiry) Rules, 2014 ............................................ 1060 1. Short title and commencement: .......................................................................................... 1060 2. Definitions: ........................................................................................................................... 1060 3. Appointment of persons having expertise in various fields: .............................................. 1060 4. Terms and Condition of service: .......................................................................................... 1060 5. Security: ................................................................................................................................ 1061 6. Letter of Request, as per Section 217: ................................................................................. 1061 The Companies (Arrests in connection with Investigation by Serious Fraud Investigation Office) Rules, 2017 .................................................................................................................................... 1062 1. Short title and commencement: .......................................................................................... 1062 2. ............................................................................................................................................... 1062 3. ............................................................................................................................................... 1062 4. ............................................................................................................................................... 1062 5. ............................................................................................................................................... 1062 6. ............................................................................................................................................... 1063 7. ............................................................................................................................................... 1063 8. ............................................................................................................................................... 1063 9. ............................................................................................................................................... 1063 The Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 ...................... 1066 1. Short Title and Commencement: ......................................................................................... 1066 2. Definitions: ........................................................................................................................... 1066 3. Application for order of a meeting: ..................................................................................... 1066 4. Disclosures in application made to the Tribunal for compromise or arrangement. -Creditors Responsibility Statement: ........................................................................................................ 1067

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5. Directions at hearing of the application: ............................................................................. 1067 6. Notice of meeting: ................................................................................................................ 1068 7. Advertisement of the notice of the meeting:...................................................................... 1070 8. Notice to statutory authorities: ........................................................................................... 1071 9. Voting:................................................................................................................................... 1071 10. Proxies: ............................................................................................................................... 1071 11. Copy of compromise or arrangement to be furnished by the company: ......................... 1072 12. Affidavit of service: ............................................................................................................ 1072 13. Result of the meeting to be decided by voting: ................................................................ 1072 14. Report of the result of the meeting by Chairperson: ........................................................ 1073 15. Petition for confirming compromise or arrangement: ..................................................... 1073 16. Date and notice of hearing: ............................................................................................... 1073 17. Order on petition: .............................................................................................................. 1073 18. Application for directions under section 232 of the Act: .................................................. 1073 19. Directions at hearing of application: ................................................................................. 1074 20. Order under section 232 of the Act: .................................................................................. 1074 21. Statement of compliance in mergers and amalgamations: .............................................. 1074 22. Report on working of compromise or arrangement: ........................................................ 1074 23. Liberty to apply: ................................................................................................................. 1074 24. Liberty of the Tribunal:....................................................................................................... 1074 25. Merger or Amalgamation of certain companies: .............................................................. 1075 26. Notice to dissenting shareholders for acquiring the shares: ............................................ 1076 27. Determination of price for purchase of minority shareholding: ...................................... 1076 28. Circular containing scheme of amalgamation or merger: ................................................ 1077 29. Appeal under sub-section (2) of section 238 of the Act:................................................... 1077 The Companies (Registered Valuers and Valuation) Rules, 2017 ................................................. 1078 1. Short title and commencement: .......................................................................................... 1078 2. Definitions: ........................................................................................................................... 1078 3. Prohibition: ........................................................................................................................... 1079 4. Valuation Examination: ........................................................................................................ 1080 5. Eligibility: .............................................................................................................................. 1081 6. Qualifications and experience: ............................................................................................ 1081 7. Application for certificate of registration: ........................................................................... 1082 8. Refusal to grant certificate: ................................................................................................. 1083 9. Conditions of Registration: .................................................................................................. 1084 10. Temporary surrender: ........................................................................................................ 1084

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11. Transitional Arrangement: ................................................................................................. 1084 12. Eligibility for valuation professional organisations: .......................................................... 1084 13. Application for recognition: ............................................................................................... 1085 14. Refusal to grant recognition: ............................................................................................. 1086 15. Conditions of Recognition: ................................................................................................. 1087 16. Valuation Standards: .......................................................................................................... 1087 17. Advisory Committee:.......................................................................................................... 1087 18. Valuation Report: ............................................................................................................... 1089 19. Cancellation or suspension of certificate of registration or recognition: ........................ 1089 20. Disciplinary Proceedings: ................................................................................................... 1089 The Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 ...................................................................................................................................................... 1117 1. Short title and commencement: .......................................................................................... 1117 2. Definitions: ........................................................................................................................... 1117 3. Removal of name of company from the Register on suo-motu basis: ............................... 1117 4. Application for removal of name of company: ................................................................... 1118 5. Manner of filing of application: ........................................................................................... 1119 6. Form to be certified:............................................................................................................. 1119 7. Manner of publication of notice: ......................................................................................... 1119 8. Manner of notarisation, appostilisation or consularisation of indemnity bond and declaration in case of foreign nationals or non-resident Indians:.......................................... 1120 9. Notice of striking off and dissolution of company: ............................................................. 1120 10. Applications or forms pending before Central Government: ........................................... 1120 The Companies (Authorised to Registered) Rules, 2014 .............................................................. 1121 1. Short title and commencement: .......................................................................................... 1121 2. Definitions: ........................................................................................................................... 1121 3. Rule: ...................................................................................................................................... 1121 4. Obligation of companies seeking registration to make publication: ................................. 1123 5. Other obligations of companies seeking registration: ........................................................ 1124 The Companies (Registration of Foreign Companies) Rules, 2014 ............................................... 1125 1. Short title and commencement: .......................................................................................... 1125 2. Definitions: ........................................................................................................................... 1125 3. Particulars relating to directors and Secretary to be furnished to the Registrar by foreign Companies: ............................................................................................................................... 1126 4. Financial Statement of foreign company: ........................................................................... 1127 5. Audit of accounts of foreign company: ............................................................................... 1128

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6. List of places of business of foreign company: .................................................................... 1129 7. Annual Return: ..................................................................................................................... 1129 8. Office where documents to be delivered and fee for registration of documents: ............ 1129 9. Certification: ......................................................................................................................... 1129 10. Authentication of translated documents: ......................................................................... 1130 11. Documents to be annexed to prospectus: ........................................................................ 1131 12. Action for improper use or description as foreign company: ........................................... 1131 13. Issue of Indian Depository Receipts (IDRs):....................................................................... 1131 The Companies (Filing of Documents and Forms in XBRL) Rules, 2015........................................ 1140 1. Short title and commencement: .......................................................................................... 1140 2. Definitions: ........................................................................................................................... 1140 3. Filing of financial statement with Registrar: ....................................................................... 1140 4. Filing of cost audit report: .................................................................................................... 1141 The Companies (Registration Offices and Fees) Rules, 2014 ........................................................ 1142 1. Short title and commencement: .......................................................................................... 1142 2. Definitions: ........................................................................................................................... 1142 3. Business activity: .................................................................................................................. 1143 4. Registration offices: ............................................................................................................. 1143 5. Powers and duties of Registrars: ......................................................................................... 1143 6. Seal of Registrar: .................................................................................................................. 1144 7. Manner and conditions of filing: ......................................................................................... 1144 8. Authentication of documents: ............................................................................................. 1145 9. Maintaining documents electronically: ............................................................................... 1147 10. Procedure on receipt of any application or form or document electronically: ............... 1147 11. Vacation or removal of directors: ...................................................................................... 1149 12. Fees: .................................................................................................................................... 1149 13. Mode of Payment:.............................................................................................................. 1149 14. Inspection, production and evidence of documents kept by Registrar: .......................... 1149 15. Inspection of documents: .................................................................................................. 1149 I. Fee for Filings etc. under section 403 of the Companies Act, 2013....................................... 1150 II. Fee on Applications (including Appeal) made to Central Government under sub-section (2) of Section 459 of the Companies Act, 2013. ................................................................................. 1154 III. Annual Fee payable by a dormant company under sub-section (5) of section 455 of the Companies Act, 2013. ............................................................................................................... 1155 IV. Fee for Inspection and providing certified copies of documents kept by the Registrar under section 399 of the Act. .............................................................................................................. 1155

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V. Fee for registration of documents under section 385 of the Act. ........................................ 1155 VI. Fees for Removal of Names of Companies from the Registrar of Companies under section 248 (2) of the Act. ..................................................................................................................... 1155 Nidhi Rules, 2014 .......................................................................................................................... 1156 1. Short title and commencement: .......................................................................................... 1156 2. Application: .......................................................................................................................... 1156 3. Definitions: ........................................................................................................................... 1156 4. Incorporation and incidental matters: ................................................................................ 1157 5. Requirements for minimum number of members, net owned fund etc.: ......................... 1157 6. General restrictions or prohibitions: ................................................................................... 1158 7. Share capital and allotment: ................................................................................................ 1159 8. Membership: ........................................................................................................................ 1159 9. Net owned funds: ................................................................................................................. 1159 10. Branches: ............................................................................................................................ 1159 11. Acceptance of deposits by Nidhis: ..................................................................................... 1160 12. Application form for deposit: ............................................................................................ 1160 13. Deposits .............................................................................................................................. 1162 14. Un-encumbered term deposits: ......................................................................................... 1163 15. Loans: .................................................................................................................................. 1163 16. Rate of interest: .................................................................................................................. 1164 17. Rules relating to Directors: ................................................................................................ 1165 18. Dividend:............................................................................................................................. 1165 19. Auditor: ............................................................................................................................... 1165 20. Prudential norms: ............................................................................................................... 1165 21. Filing of half yearly return:................................................................................................. 1167 22. Auditor’s certificate:........................................................................................................... 1167 23. Power to enforce compliance: ........................................................................................... 1167 24. Penalty for non-compliance: .............................................................................................. 1167 The Companies (Transfer of Pending Proceedings) Rules, 2016 .................................................. 1168 1. Short title and Commencement: ......................................................................................... 1168 2. Definitions: ........................................................................................................................... 1168 3. Transfer of pending proceedings relating to cases other than Winding up: ...................... 1168 4. Pending proceeding relating to Voluntary Winding up: ..................................................... 1168 5. Transfer of pending proceedings of Winding up on the ground of inability to pay debts: 1169 6. Transfer of pending proceedings of Winding up matters on the grounds other than inability to pay debts: ............................................................................................................................. 1169

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7. Transfer of Records: ............................................................................................................. 1169 8. Fees not to be paid: .............................................................................................................. 1169 National Company Law Appellate Tribunal (Salaries and Allowances and other terms and conditions of service of the Chairperson and other Members) Rules, 2015 ................................ 1170 1. Short title and commencement: .......................................................................................... 1170 2. Definitions: ........................................................................................................................... 1170 3. Pay: ....................................................................................................................................... 1170 4. Pension, Gratuity or Provident Fund: .................................................................................. 1170 5. Leave: .................................................................................................................................... 1171 6. Leave Sanctioning Authority: ............................................................................................... 1171 7. Travelling Allowances: ......................................................................................................... 1171 8. Official visits abroad:............................................................................................................ 1171 9. Leave Travel Concession: ..................................................................................................... 1171 10. Facility for Medical Treatment: ......................................................................................... 1172 11. Accommodation: ................................................................................................................ 1172 12. Facility of conveyance: ....................................................................................................... 1172 13. Telephone facility: .............................................................................................................. 1172 14. Conditions of service of Chairperson:................................................................................ 1172 15. Conditions of Service of Judicial Member: ........................................................................ 1172 16. Oath of office and secrecy: ................................................................................................ 1173 17. Declaration of financial or other interest: ......................................................................... 1173 18. Residuary provisions: ......................................................................................................... 1173 19. Powers to relax:.................................................................................................................. 1173 National Company Law Appellate Tribunal Rules, 2016 ............................................................... 1175 1. Short title and commencement: .......................................................................................... 1175 2. Definitions: ........................................................................................................................... 1175 3. Computation of time period: ............................................................................................... 1175 4. Forms: ................................................................................................................................... 1176 5. Format of order or direction or rule: ................................................................................... 1176 6. Official seal of the Appellate Tribunal: ................................................................................ 1176 7. Custody of the records: ........................................................................................................ 1176 8. Sitting of Appellate Tribunal: ............................................................................................... 1176 9. Sitting hours of the Appellate Tribunal: .............................................................................. 1176 10. Working hours of office: .................................................................................................... 1176 11. Inherent powers: ................................................................................................................ 1176 12. Calendar: ............................................................................................................................. 1176

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13. Listing of cases: ................................................................................................................... 1177 14. Power to exempt: ............................................................................................................... 1177 15. Power to extend time: ....................................................................................................... 1177 16. Powers and functions of the Registrar: ............................................................................. 1177 17. Power of adjournment: ...................................................................................................... 1177 18. Delegation powers of the Chairperson:............................................................................. 1178 19. Procedure for proceedings:................................................................................................ 1178 20. Particulars to be set out in the address for service: ......................................................... 1178 21. Initialling alteration:........................................................................................................... 1179 22. Presentation of appeal: ...................................................................................................... 1179 23. Number of copies to be filed ............................................................................................. 1179 24. Endorsement and verification: .......................................................................................... 1179 25. Translation of document: ................................................................................................... 1179 26. Endorsement and scrutiny of petition or appeal or document: ....................................... 1179 27. Registration of proceedings admitted: .............................................................................. 1180 28. Ex-parte amendments: ....................................................................................................... 1180 29. Calling for records: ............................................................................................................. 1180 30. Production of authorisation for and on behalf of an association: ................................... 1180 31. Interlocutory applications: ................................................................................................. 1180 32. Procedure on production of defaced, torn or damaged documents:............................... 1181 33. Preparation and publication of daily cause list: ................................................................ 1181 34. Carry forward of cause list and adjournment of cases on account of non-sitting of an Appellate Tribunal: ................................................................................................................... 1181 35. Diaries: ................................................................................................................................ 1182 36. Order sheet: ........................................................................................................................ 1182 37. Maintenance of diary: ........................................................................................................ 1182 38. Statutes or citations for reference: ................................................................................... 1182 39. Calling of cases in Bench: ................................................................................................... 1182 40. Regulation of Bench work: ................................................................................................. 1183 41. Registers to be maintained: ............................................................................................... 1183 42. Arrangement of records in pending matters:.................................................................... 1183 43. Contents of main file: ......................................................................................................... 1183 44. Contents of process file:..................................................................................................... 1184 45. Execution file: ..................................................................................................................... 1184 46. File for miscellaneous applications:................................................................................... 1184 47. Destruction of record: ........................................................................................................ 1184

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48. Issue of notice: ................................................................................................................... 1185 49. Summons: ........................................................................................................................... 1185 50. Steps for issue of fresh notice:........................................................................................... 1185 51. Consequence of failure to take steps for issue of fresh notice: ....................................... 1185 52. Entries regarding service of notice or process: ................................................................. 1185 53. Non-appearance of respondent and consequences: ........................................................ 1185 54. Filing of objections by respondent, form and consequences: .......................................... 1186 55. Fee:...................................................................................................................................... 1186 56. Award of costs in the proceedings: ................................................................................... 1186 57. Inspection of the records: .................................................................................................. 1186 58. Grant of inspection:............................................................................................................ 1187 59. Application for grant of inspection: ................................................................................... 1187 60. Fee payable for inspection: ................................................................................................ 1187 61. Mode of inspection: ........................................................................................................... 1187 62. Maintenance of register of inspection: ............................................................................. 1187 63. Appearance of authorised representative: ....................................................................... 1188 64. Proof of engagement: ........................................................................................................ 1188 65. Restriction on party’s right to be heard: ........................................................................... 1188 66. Professional dress for the authorised representative: ..................................................... 1188 67. Title of affidavits: ............................................................................................................... 1188 68. Form and contents of the affidavit: ................................................................................... 1188 69. Persons authorised to attest:............................................................................................. 1188 70. Affidavits of illiterate, visually challenged persons: ......................................................... 1188 71. Identification of deponent: ................................................................................................ 1189 72. Annexures to the affidavit: ................................................................................................ 1189 73. Application for production of documents, form of summons:......................................... 1189 74. Suo motu summoning of documents: ............................................................................... 1189 75. Marking of documents: ...................................................................................................... 1189 76. Return and transmission of documents: ........................................................................... 1190 77. Procedure for examination of witnesses, issue of Commissions: .................................... 1190 78. Examination in camera: ..................................................................................................... 1190 79. Form of oath or affirmation to witness: ............................................................................ 1190 80. Form of oath or affirmation to interpreter: ...................................................................... 1190 81. Officer to administer oath: ................................................................................................ 1190 82. Recording of deposition: .................................................................................................... 1190 83. Numbering of witnesses: ................................................................................................... 1190

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84. Grant of discharge certificate: ........................................................................................... 1191 85. Witness allowance payable: .............................................................................................. 1191 86. Records to be furnished to the Commissioner: ................................................................. 1191 87. Taking of specimen handwriting, signature etc.: .............................................................. 1191 88. Order: .................................................................................................................................. 1191 89. Operative portion of the order: ......................................................................................... 1191 90. Corrections: ........................................................................................................................ 1191 91. Pronouncement of order: .................................................................................................. 1192 92. Pronouncement of order by any one member of the Bench:........................................... 1192 93. Authorizing any Member to pronounce order: ................................................................. 1192 94. Making of entries by Court Master:................................................................................... 1192 95. Transmission of order by the Court Master: ..................................................................... 1192 96. Format of order: ................................................................................................................. 1193 97. Indexing of case files after disposal: .................................................................................. 1193 98. Transmission of files or records or orders: ........................................................................ 1193 99. Copies of Orders in library: ................................................................................................ 1193 100. Register of Special Leave Petitions/Appeal:.................................................................... 1193 101. Placing of Supreme Court orders before Appellate Tribunal: ........................................ 1193 102. Registrar to ensure compliance of Supreme Court orders: ............................................ 1194 103. Filling through electronic media: ..................................................................................... 1194 104. Removal of difficulties and issue of directions: .............................................................. 1194 National Company Law Tribunal Rules, 2016 ............................................................................... 1204 1. Short title and Commencement: ......................................................................................... 1204 2. Definitions: ........................................................................................................................... 1204 3. Computation of time period: ............................................................................................... 1206 4. Forms: ................................................................................................................................... 1207 5. Format of order or direction or rule: ................................................................................... 1207 6. Official seal of the Tribunal: ................................................................................................. 1207 7. Custody of the records: ........................................................................................................ 1207 8. Sitting of the Tribunal: ......................................................................................................... 1207 9. Sitting hours: ........................................................................................................................ 1207 10. Working hours: ................................................................................................................... 1207 11. Inherent Powers: ................................................................................................................ 1207 12. Calendar: ............................................................................................................................. 1207 13. Listing of cases: ................................................................................................................... 1208 14. Power to exempt: ............................................................................................................... 1208

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15. Power to extend time: ....................................................................................................... 1208 16. Functions of the President: ................................................................................................ 1208 17. Functions of the Registrar: ................................................................................................. 1208 18. Functions of the Secretary: ................................................................................................ 1209 19. Delegation of powers by the President: ............................................................................ 1209 20. Procedure: .......................................................................................................................... 1210 21. Particulars to be set out in the address for service: ......................................................... 1210 22. Initialling alteration:........................................................................................................... 1211 23. Presentation of petition or appeal: ................................................................................... 1211 23A. Presentation of joint petition: ......................................................................................... 1211 24. Number of copies to be filed: ............................................................................................ 1211 25. Lodging of caveat: .............................................................................................................. 1211 26. Endorsement and Verification: .......................................................................................... 1212 27. Translation of document: ................................................................................................... 1212 28. Endorsement and scrutiny of petition or appeal or document: ....................................... 1212 29. Registration of proceedings admitted: .............................................................................. 1213 30. Calling for records: ............................................................................................................. 1213 31. Production of authorisation for and on behalf of an association: ................................... 1213 32. Interlocutory applications: ................................................................................................. 1213 33. Procedure on production of defaced, torn or damaged documents:............................... 1213 34. General Procedure: ............................................................................................................ 1213 35. Advertisement detailing petition: ..................................................................................... 1214 36. Maintenance of Cash Register: .......................................................................................... 1214 37. Notice to Opposite Party:................................................................................................... 1215 38. Service of Notices and processes: ...................................................................................... 1215 39. Production of Evidence by Affidavit: ................................................................................. 1216 40. Production of additional evidence before the Bench: ...................................................... 1216 41. Filing of Reply and other Documents by the Respondents: ............................................. 1216 42. Filing of Rejoinder: ............................................................................................................. 1217 43. Power of the Bench to call for further information or evidence: ..................................... 1217 44. Hearing of petition or applications:................................................................................... 1217 45. Rights of a party to appear before the Tribunal: .............................................................. 1217 46. Registration of authorised representative’s interns: ........................................................ 1218 47. Oath to the witness: ........................................................................................................... 1218 48. Consequence of non-appearance of applicant: ................................................................ 1218 49. Ex-parte Hearing and disposal: .......................................................................................... 1219

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50. Registry to send certified copy: ......................................................................................... 1219 51. Power to regulate the procedure: ..................................................................................... 1219 52. Summoning of witnesses and recording Evidence: ........................................................... 1219 53. Substitution of legal representatives: ............................................................................... 1219 54. Assessors or valuers: .......................................................................................................... 1220 55. Pleadings before the Tribunal: ........................................................................................... 1220 56. Application for execution:.................................................................................................. 1220 57. Issue of process of execution: ............................................................................................ 1220 58. Effect of non-compliance: .................................................................................................. 1220 59. Procedure for imposition of penalty under the Act: ......................................................... 1220 60. Matters relating to the Judgments or Orders of the Tribunal: ......................................... 1221 61. Amicus Curiae: .................................................................................................................... 1221 62. Recusal: ............................................................................................................................... 1221 63. Presentation and scrutiny of petitions or applications:.................................................... 1222 64. Matter earlier dealt by Company Law Board: ................................................................... 1222 65. Petition or Application under sub-section (2) of section 45QA of the Reserve Bank of India Act, 1934 (2 of 1934): ............................................................................................................... 1223 66. Application under sub- section (7) of section 7: ............................................................... 1223 67. Petition under sub-section (41) of section 2: .................................................................... 1224 68. Petition under section 14: .................................................................................................. 1224 69. Petition under sub-section (3) of section 55: .................................................................... 1225 70. Appeal under sections 58 and 59:...................................................................................... 1226 71. Application under proviso to clause (b) of sub-section (1) of section 61:........................ 1227 72. Appeal against the order of the Government under Section 62(4): ................................. 1227 73. Application under sections 71(9), 71(10), section 73(4) or section 74(2) and 76(2): ....... 1228 74. Application for calling or obtaining a direction to call annual general meeting: ............ 1229 75. Application for obtaining an order for calling of general meeting (other than Annual General Meeting): .................................................................................................................... 1229 76. Inspection of minute-books of general meeting: .............................................................. 1229 77. Application under section 131: .......................................................................................... 1229 78. Application under Section 140:.......................................................................................... 1230 79. Application under section 169: .......................................................................................... 1230 80. Application under section 213 for investigation: .............................................................. 1231 81. Application under section 241: .......................................................................................... 1231 82. Withdrawal of Application filed under section 241: ......................................................... 1231 83. Application under section 243: .......................................................................................... 1231

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84. Right to apply under section 245: ...................................................................................... 1231 85. Conducting a class action suit: ........................................................................................... 1232 86. Rule of opt-out: .................................................................................................................. 1232 87. Publication of notice: ......................................................................................................... 1232 87A. Appeal or application under sub-section (1) and sub-section (3) of section 252: ......... 1233 88. Reference to the Tribunal: ................................................................................................. 1234 89. Preparation and publication of daily cause list: ................................................................ 1234 90. Carry forward of cause list and adjournment of cases on account of non-sitting of a Bench: .................................................................................................................................................. 1235 91. Diaries: ................................................................................................................................ 1235 92. Order sheet: ........................................................................................................................ 1235 93. Maintenance of court diary: .............................................................................................. 1236 94. Statutes or citations for reference: ................................................................................... 1236 95. Calling of cases in court: ..................................................................................................... 1236 96. Regulation of court work: .................................................................................................. 1236 97. Registers to be maintained: ............................................................................................... 1236 98. Arrangement of records in pending matters:.................................................................... 1237 99. Contents of main file: ......................................................................................................... 1237 100. Contents of process file:................................................................................................... 1237 101. Execution file: ................................................................................................................... 1238 102. File for miscellaneous applications:................................................................................. 1238 103. Preservation of Record: ................................................................................................... 1238 104. Retention, Preservation and Destruction of Records: .................................................... 1238 105. Issue of notice: ................................................................................................................. 1238 106. Summons: ......................................................................................................................... 1239 107. Steps for issue of fresh notice:......................................................................................... 1239 108. Consequence of failure to take steps for issue of fresh notice: ..................................... 1239 109. Entries regarding service of notice or process: ............................................................... 1239 110. Default of appearance of respondent and consequences: ............................................. 1239 111. Filing of objections by respondent, form and consequences: ........................................ 1239 112. Fees: .................................................................................................................................. 1240 113. Award of costs in the proceedings: ................................................................................. 1240 114. Inspection of the records: ................................................................................................ 1240 115. Grant of inspection:.......................................................................................................... 1240 116. Application for grant of inspection: ................................................................................. 1241 117. Mode of inspection: ......................................................................................................... 1241

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118. Maintenance of register of inspection: ........................................................................... 1241 119. Appearance of authorised representative: ..................................................................... 1241 120. Consent for engaging another legal practitioner: ........................................................... 1241 121. Restrictions on appearance: ............................................................................................ 1242 122. Restriction on party’s right to be heard: ......................................................................... 1242 123. Empanelment of special authorised representatives by the Tribunal: .......................... 1242 124. Professional dress for the authorised representatives:.................................................. 1242 125. Title of affidavits: ............................................................................................................. 1242 126. Form and contents of the affidavit: ................................................................................. 1242 127. Persons authorised to attest:........................................................................................... 1242 128. Affidavits of illiterate, visually challenged persons: ....................................................... 1242 129. Identification of deponent: .............................................................................................. 1243 130. Annexures to the affidavit: .............................................................................................. 1243 131. Application for production of documents, form of summons:....................................... 1243 132. Suo motu summoning of documents: ............................................................................. 1243 133. Marking of documents: .................................................................................................... 1243 134. Return and transmission of documents: ......................................................................... 1244 135. Procedure for examination of witnesses, issue of Commissions: .................................. 1244 136. Examination in camera: ................................................................................................... 1244 137. Form of oath or affirmation to witness: .......................................................................... 1244 138. Form of oath or affirmation to interpreter: .................................................................... 1244 139. Officer to administer oath: .............................................................................................. 1244 140. Form recording of deposition: ......................................................................................... 1244 141. Numbering of witnesses: ................................................................................................. 1244 142. Grant of discharge certificate: ......................................................................................... 1245 143. Witness allowance payable: ............................................................................................ 1245 144. Records to be furnished to the Commissioner: ............................................................... 1245 145. Taking of specimen handwriting, signature etc.: ............................................................ 1245 146. Disposal of Cases: ............................................................................................................. 1245 147. Operative portion of the order: ....................................................................................... 1245 148. Corrections: ...................................................................................................................... 1246 149. Power to impose Costs:.................................................................................................... 1246 150. Pronouncement of Order: ................................................................................................ 1246 151. Pronouncement of order by any one member of the Bench:......................................... 1246 152. Authorising any member to pronounce order: ............................................................... 1246 153. Enlargement of time: ....................................................................................................... 1246

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154. Rectification of Order: ...................................................................................................... 1247 155. General power to amend: ................................................................................................ 1247 156. Making of entries by Court Master: ................................................................................ 1247 157. Transmission of order by the Court Master: ................................................................... 1247 158. Format of order: ............................................................................................................... 1247 159. Indexing of case files after disposal:................................................................................ 1247 160. Transmission of files or records or orders: ...................................................................... 1248 161. Filing of Order of the Tribunal with the Registrar of Companies: .................................. 1248 162. Copies of orders in library: ............................................................................................... 1248 163. Register of Appeals, Petitions, etc.: ................................................................................. 1248 164. Placing of National Company Law Appellate Tribunal orders before Tribunal:............. 1248 165. Registrar to ensure compliance of National Company Law Appellate Tribunal orders: 1248 The Companies (Mediation and Conciliation) Rules, 2016 ........................................................... 1251 1. Short Title and Commencement: ......................................................................................... 1251 2. Definitions: ........................................................................................................................... 1251 3. Panel of mediators or conciliators: ...................................................................................... 1251 4. Qualifications for empanelment:......................................................................................... 1252 5. Disqualifications for empanelment: .................................................................................... 1252 6. Application for appointment of Mediator or Conciliator and his appointment: ............... 1252 7. Deletion from the Panel: ...................................................................................................... 1253 8. Withdrawing name from Panel: .......................................................................................... 1253 9. Duty of mediator or conciliator to disclose certain facts:................................................... 1253 10. Withdrawal of appointment: ............................................................................................. 1253 11. Procedure for disposal of matters: .................................................................................... 1254 12. Mediator or Conciliator not bound by the Indian Evidence Act, 1872 or the Code of Civil Procedure, 1908: ...................................................................................................................... 1254 13. Representation of parties: ................................................................................................. 1254 14. Consequences of non-attendance of parties at sessions or meetings on due dates: ...... 1255 15. Administrative assistance: ................................................................................................. 1255 16. Offer of settlement by parties: .......................................................................................... 1255 17. Role of Mediator or Conciliator: ........................................................................................ 1255 18. Parties alone responsible for taking decision: .................................................................. 1255 19. Time limit for completion of mediation or conciliation:................................................... 1255 20. Parties to act in good faith: ................................................................................................ 1256 21. Confidentiality, disclosure and inadmissibility of information: ....................................... 1256 22. Privacy: ............................................................................................................................... 1256

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23. Protection of action taken in good faith: .......................................................................... 1256 24. Communication between mediator or conciliator and the Central Government or the Tribunal or the Appellate Tribunal: ......................................................................................... 1257 25. Settlement agreement: ...................................................................................................... 1257 26. Fixing date for recording settlement and passing order:.................................................. 1257 27. Expenses of the mediation and conciliation: .................................................................... 1258 28. Ethics to be followed by Mediator or Conciliator: ............................................................ 1258 29. Resort to arbitral or judicial proceedings: ......................................................................... 1259 30. Matters not to be referred to the mediation or conciliation: .......................................... 1259 The Companies (Adjudication of Penalties) Rules, 2014 .............................................................. 1260 1. Short title and commencement: .......................................................................................... 1260 2. Definitions: ........................................................................................................................... 1260 3. Adjudication of penalties: .................................................................................................... 1260 4. Appeal against the order of adjudicating officer: ............................................................... 1261 5. Registration of appeal: ......................................................................................................... 1262 6. Disposal of appeal by Regional Director:............................................................................. 1262 The Companies (Miscellaneous) Rules, 2014................................................................................ 1264 1. Short title and commencement: .......................................................................................... 1264 2. Definitions: ........................................................................................................................... 1264 3. Application for obtaining status of dormant company: ..................................................... 1264 4. Certificate of status of dormant company: ......................................................................... 1265 5. Register of dormant companies: ......................................................................................... 1265 6. Minimum number of directors for dormant company: ...................................................... 1265 7. Return of dormant companies:............................................................................................ 1265 8. Application for seeking status of an active company: ........................................................ 1265 9. Fees for application to Central Government: ...................................................................... 1266 10. Association or partnership of persons exceeding certain number: ................................. 1266 11. Applications or forms pending before Central Government, Regional Director or Registrar of Companies: ........................................................................................................................... 1266

Annexure– 1 ................................................................................................................... 1267 List of Notified Sections of Companies Act, 2013 till date ............................................................ 1268 98 sections notified on 12th September 2013.......................................................................... 1268 Section 135 and Schedule VII notified on 27th February, 2014 ............................................... 1271 183 sections notified on 27th March, 2014 .............................................................................. 1272 Sub-sections (2) & (3) of section 74 notified on 6th June, 2014 ............................................... 1276 New Section 76A Inserted on 29th May 2015 .......................................................................... 1277

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Sub-sections (5), (6) & (7) of section 125 notified on 13th January, 2016 ............................... 1278 5 sections notified on 18th May 2016 ...................................................................................... 1279 37 sections notified on 1st June 2016....................................................................................... 1280 Section 124 and sub-sections of Section 125 notified on 7th September, 2016 ...................... 1282 7 Sections Notified on 9th September 2016 ............................................................................. 1283 28 Sections Omitted on 15th November 2016 ......................................................................... 1284 88 Sections Notified on 7th December 2016 ............................................................................ 1285 5 Sections Notified on 26th December, 2016 ........................................................................... 1286 Section 234 notified on 13th day of April, 2017 ....................................................................... 1287 Commencement Notification of Companies (Amendment) Act, 2015 ......................................... 1288

Annexure– 2 ................................................................................................................... 1289 Exemptions to Government Companies ....................................................................................... 1290 Exemptions to Private Companies ................................................................................................ 1295 Exemptions to Nidhis .................................................................................................................... 1299 Exemptions to Section 8 (Non-profit) Companies ........................................................................ 1302 Exemption to Specified IFSC Public Company............................................................................... 1305 Exemption to Specified IFSC Private Company ............................................................................. 1312

Annexure– 3 ................................................................................................................... 1318 List of Laws mentioned in the Companies Act, 2013 for Compliance .......................................... 1319

Annexure– 4 ................................................................................................................... 1321 List of Statutory Registers to be maintained under the Companies Act 2013 ............................. 1322

Annexure– 5 ................................................................................................................... 1324 TITLE OF FORMS ............................................................................................................................ 1325 Mapping of e-Forms prescribed under the Companies Act, 2013 with e-Forms prescribed under Companies Act, 1956 .................................................................................................................... 1326

Annexure– 6 ................................................................................................................... 1337 Matters Requiring Sanction by Special Resolution ....................................................................... 1338

Annexure- 7 .................................................................................................................... 1340 Matters Requiring Sanction by Ordinary Resolution .................................................................... 1341

Annexure- 8 .................................................................................................................... 1343 Matters requiring Approval through Postal Ballot ....................................................................... 1344

Annexure- 9 .................................................................................................................... 1345 The Companies (Auditor's Report) Order, 2016 ........................................................................... 1346

Annexure- 10 .................................................................................................................. 1350 Central Registration Centre (CRC)................................................................................................. 1351

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Annexure- 11 .................................................................................................................. 1352 Jurisdictions of Regional Directors ................................................................................................ 1353

Annexure- 12 .................................................................................................................. 1354 National Company Law Tribunal (NCLT) ....................................................................................... 1355

Annexure- 13 .................................................................................................................. 1357 Specimen Format of Compliance Certificate ................................................................................ 1358 Feedback ....................................................................................................................................... 1359

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