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© AUBSP: All Updates and Books for Students and Professionals

Interactive platform for Finance Professionals All Updates and Books for Students and Professionals

(Updated till 10th April, 2018)

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.

Copyright © 2018 AUBSP

This is only INDEX Part of Companies Act 2013

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© AUBSP The Companies Act, 2013 Back to Index 2 | P a g e

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 Companies Act 2013 contains 470 sections under 29 chapters with seven schedules.

However, currently there are only 432 (470+1-39) sections remains in this Act. Out of those

432 sections, the Ministry of Corporate Affairs (MCA) has already notified 431

(1+98+1+183+1+1+5+37+1+7+88+5+1+1+1) sections and majority of the Rules to the various

Chapters/Sections of the Companies Act, 2013. Only one section i.e. 465 is 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). Thereafter, the Companies

(Amendment) Act, 2017 enacted by Parliament in the Sixty-eighth Year of the Republic of

India after receiving the assent of the President on the 3rd January, 2018.

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

Tuesday, April 10, 2018

https://www.aubsp.com/

https://www.aubsp.com/latest-amended-ebook-on-companies-act-2013/



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), the Companies (Amendment) Act, 2017 (1 of 2018), 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]




© AUBSP: All Updates and Books for Students and Professionals

[18 of 2013]1

The Companies Act, 2013 [As amended by the Companies (Amendment) Act, 2017 (1 of 2018)]

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

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 (Sections 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: ................................................................................. 58

(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: .......................................................................................................... 59

(18) Chief Executive Officer: ........................................................................................................ 59

(19) Chief Financial Officer: ........................................................................................................ 59

(20) Company: .............................................................................................................................. 59

(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: ................................................................................................................................. 60

(28) Cost Accountant: ................................................................................................................... 60

(29) Court: .................................................................................................................................... 60

(30) Debenture: ............................................................................................................................. 60

(31) Deposit: ................................................................................................................................. 61

(32) Depository: ............................................................................................................................ 61

(33) Derivative: ............................................................................................................................. 61

(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: ................................................................................................... 63

(45) Government Company:.......................................................................................................... 63

(46) Holding Company: ................................................................................................................ 63

(47) Independent Director: ........................................................................................................... 63

(48) Indian Depository Receipt: ................................................................................................... 63

(49) Interested Director: [Omitted] .............................................................................................. 63

(50) Issued Capital: ...................................................................................................................... 63

(51) Key Managerial Personnel: .................................................................................................. 63

(52) Listed Company: ................................................................................................................... 64

(53) Manager: ............................................................................................................................... 64

(54) Managing Director: .............................................................................................................. 64

(55) Member: ................................................................................................................................ 64

(56) Memorandum: ....................................................................................................................... 64

(57) Net Worth: ............................................................................................................................. 65

(58) Notification: .......................................................................................................................... 65





(59) Officer: .................................................................................................................................. 65

(60) Officer who is in Default: ...................................................................................................... 65

(61) Official Liquidator: ............................................................................................................... 65

(62) One Person Company: .......................................................................................................... 66

(63) Ordinary or Special Resolution: ........................................................................................... 66

(64) Paid-up Share Capital or Share Capital Paid-up: ................................................................ 66

(65) Postal Ballot: ......................................................................................................................... 66

(66) Prescribed: ............................................................................................................................ 66

(67) Previous Company Law: ....................................................................................................... 66

(68) Private Company:.................................................................................................................. 67

(69) Promoter: .............................................................................................................................. 67

(70) Prospectus: ............................................................................................................................ 67

(71) Public Company: ................................................................................................................... 67

(72) Public Financial Institution: ................................................................................................. 68

(73) Recognised Stock Exchange: ................................................................................................. 68

(74) Register of Companies: ......................................................................................................... 68

(75) Registrar: .............................................................................................................................. 68

(76) Related Party: ....................................................................................................................... 69

(77) Relative: ................................................................................................................................ 69

(78) Remuneration: ....................................................................................................................... 70

(79) Schedule: ............................................................................................................................... 70

(80) Scheduled Bank: .................................................................................................................... 70

(81) Securities: .............................................................................................................................. 70

(82) Securities and Exchange Board: ........................................................................................... 70

(83) Serious Fraud Investigation Office: ...................................................................................... 70

(84) Share: .................................................................................................................................... 70

(85) Small Company: .................................................................................................................... 70

(86) Subscribed Capital: ............................................................................................................... 70

(87) Subsidiary Company or Subsidiary: ...................................................................................... 71

(88) Sweat Equity Shares: ............................................................................................................. 71

(89) Total Voting Power: .............................................................................................................. 71

(90) Tribunal: ................................................................................................................................ 71

(91) Turnover: ............................................................................................................................... 71

(92) Unlimited Company: ............................................................................................................. 71

(93) Voting Right: ......................................................................................................................... 71

(94) Whole-time Director: ............................................................................................................ 72

(94A) Winding Up: ........................................................................................................................ 72





Exception/ Modification/ Adaptation: ........................................................................................... 72

CHAPTER II INCORPORATION OF COMPANY AND MATTERS INCIDENTAL THERETO (Sections 3-

22) .......................................................................................................................................... 74

3. Formation of company ........................................................................................................ 75


3A. Members severally liable in certain cases .......................................................................... 77

4. Memorandum .................................................................................................................... 78


5. Articles ............................................................................................................................... 82

6. Act to override memorandum, articles, etc. ......................................................................... 83

7. Incorporation of company .................................................................................................. 84

8. Formation of companies with charitable objects, etc. .......................................................... 87

9. Effect of registration ........................................................................................................... 90

10. Effect of memorandum and articles ................................................................................... 91

11. Commencement of business, etc. [Omitted w.e.f. 29-05-2015] ........................................... 92

12. Registered office of company ............................................................................................ 93


13. Alteration of memorandum .............................................................................................. 96

14. Alteration of articles. ........................................................................................................ 98

15. Alteration of memorandum or articles to be noted in every copy ....................................... 99

16. Rectification of name of company ................................................................................... 100

17. Copies of memorandum, articles, etc., to be given to members. ...................................... 101

18. Conversion of companies already registered.................................................................... 102

19. Subsidiary company not to hold shares in its holding company. ....................................... 103

20. Service of documents. ..................................................................................................... 104

Exception/ Modification/ Adaptation: ......................................................................................... 104

21. Authentication of documents, proceedings and contracts ................................................ 105


22. Execution of bills of exchange, etc. .................................................................................. 106

CHAPTER III PROSPECTUS AND ALLOTMENT OF SECURITIES (Sections 23-42) ................ 107

23. Public offer and private placement. ................................................................................. 108

24. Power of Securities and Exchange Board to regulate issue and transfer of securities, etc. . 109

25. Document containing offer of securities for sale to be deemed prospectus. ..................... 110

26. Matters to be stated in prospectus. ................................................................................. 111

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. ...................................... 123

37. Action by affected persons. ............................................................................................. 124

38. Punishment for personation for acquisition, etc., of securities. ....................................... 125

39. Allotment of securities by company. ............................................................................... 126

40. Securities to be dealt with in stock exchanges. ................................................................ 127

41. Global depository receipt. ............................................................................................... 128

42. Issue of shares on private placement basis. ..................................................................... 129

CHAPTER IV SHARE CAPITAL AND DEBENTURES (Sections 43-72) ................................ 132

43. Kinds of share capital. ..................................................................................................... 133


44. Nature of shares or debentures. ...................................................................................... 135

45. Numbering of shares. ...................................................................................................... 136

46. Certificate of shares. ....................................................................................................... 137

47. Voting rights. .................................................................................................................. 138


48. Variation of shareholders’ rights ..................................................................................... 139

49. Calls on shares of same class to be made on uniform basis............................................... 140

50. Company to accept unpaid share capital, although not called up ..................................... 141

51. Payment of dividend in proportion to amount paid-up .................................................... 142

52. Application of premiums received on issue of shares ....................................................... 143

53. Prohibition on issue of shares at discount ........................................................................ 144

54. Issue of sweat equity shares ........................................................................................... 145


55. Issue and redemption of preference shares ..................................................................... 146

56. Transfer and transmission of securities ........................................................................... 148


57. Punishment for personation of shareholder .................................................................... 150

58. Refusal of registration and appeal against refusal ............................................................ 151

59. Rectification of register of members ................................................................................ 152





60. Publication of authorised, subscribed and paid-up capital ................................................ 153

61. Power of limited company to alter its share capital ......................................................... 154

62. Further issue of share capital .......................................................................................... 155


63. Issue of bonus shares ...................................................................................................... 158

64. Notice to be given to Registrar for alteration of share capital ........................................... 159

65. Unlimited company to provide for reserve share capital on conversion into limited company

............................................................................................................................................ 160

66. Reduction of share capital ............................................................................................... 161

67. Restrictions on purchase by company or giving of loans by it for purchase of its shares .... 164


68. Power of company to purchase its own securities ............................................................ 166

69. Transfer of certain sums to capital redemption reserve account....................................... 169

70. Prohibition for buy-back in certain circumstances. ........................................................... 170

71. Debentures..................................................................................................................... 171

72. Power to nominate ......................................................................................................... 173

CHAPTER V ACCEPTANCE OF DEPOSITS BY COMPANIES (Sections 73-76A) ................... 174

73. Prohibition on acceptance of deposits from public. .......................................................... 175


74. Repayment of deposits, etc., accepted before commencement of this Act. ....................... 177

75. Damages for fraud .......................................................................................................... 178

76. Acceptance of deposits from public by certain companies ................................................ 179

76A. Punishment for contravention of section 73 or section 76 ............................................. 180

CHAPTER VI REGISTRATION OF CHARGES (Sections 77-87) ........................................ 181

77. Duty to register charges, etc. ........................................................................................... 182

78. Application for registration of charge .............................................................................. 183

79. Section 77 to apply in certain matters ............................................................................. 184

80. Date of notice of charge. ................................................................................................. 185

81. Register of charges to be kept by Registrar ...................................................................... 186

82. Company to report satisfaction of charge ........................................................................ 187


83. Power of Registrar to make entries of satisfaction and release in absence of intimation from

company .............................................................................................................................. 189

84. Intimation of appointment of receiver or manager .......................................................... 190

85. Company’s register of charges ......................................................................................... 191

86. Punishment for contravention ........................................................................................ 192





87. Rectification by Central Government in register of charges .............................................. 193

CHAPTER VII MANAGEMENT AND ADMINISTRATION (Sections 88-122) ......................... 194

88. Register of members, etc. ............................................................................................... 195

89. Declaration in respect of beneficial interest in any share ................................................. 196


90. Register of significant beneficial owners in a company ..................................................... 198

91. Power to close register of members or debenture holders or other security holders ......... 200

92. Annual return. ................................................................................................................ 201


93. [Omitted] ....................................................................................................................... 203

94. Place of keeping and inspection of registers, returns, etc. ................................................ 204

95. Registers, etc., to be evidence. ........................................................................................ 205

96. Annual general meeting .................................................................................................. 206


97. Power of Tribunal to call annual general meeting ............................................................ 208

98. Power of Tribunal to call meetings of members, etc. ........................................................ 209

99. Punishment for default in complying with provisions of sections 96 to 98. ....................... 210

100. Calling of extraordinary general meeting ....................................................................... 211


101. Notice of meeting ......................................................................................................... 213


102. Statement to be annexed to notice ............................................................................... 215


103. Quorum for meetings .................................................................................................... 217


104. Chairman of meetings ................................................................................................... 218


105. Proxies ......................................................................................................................... 219


106. Restriction on voting rights ........................................................................................... 221


107. Voting by show of hands ............................................................................................... 222


108. Voting through electronic means ................................................................................... 223

109. Demand for poll ............................................................................................................ 224






110. Postal ballot ................................................................................................................. 225

111. Circulation of members’ resolution ............................................................................... 226

112. Representation of President and Governors in meetings ................................................ 227

113. Representation of corporations at meeting of companies and of creditors. .................... 228

114. Ordinary and special resolutions. .................................................................................. 229

115. Resolutions requiring special notice .............................................................................. 230

116. Resolutions passed at adjourned meeting ..................................................................... 231

117. Resolutions and agreements to be filed. ........................................................................ 232


118. Minutes of proceedings of general meeting, meeting of Board of Directors and other

meeting and resolutions passed by postal ballot. .................................................................. 234


119. Inspection of minute-books of general meeting. ............................................................ 236

120. Maintenance and inspection of documents in electronic form ........................................ 237

121. Report on annual general meeting ................................................................................ 238

122. Applicability of this Chapter to One Person Company .................................................... 239

CHAPTER VIII DECLARATION AND PAYMENT OF DIVIDEND (Sections 123-127) ............ 240

123. Declaration of dividend ................................................................................................. 241


124. Unpaid Dividend Account .............................................................................................. 243

125. Investor Education and Protection Fund ........................................................................ 245

126. Right to dividend, rights shares and bonus shares to be held in abeyance pending

registration of transfer of shares........................................................................................... 248

127. Punishment for failure to distribute dividends ............................................................... 249


CHAPTER IX ACCOUNTS OF COMPANIES (Sections 128-138) ....................................... 250

128. Books of account, etc., to be kept by company .............................................................. 251

129. Financial statement ...................................................................................................... 253


130. Re-opening of accounts on court’s or Tribunal’s orders .................................................. 256

131. Voluntary revision of financial statements or Board’s report .......................................... 257

132. Constitution of National Financial Reporting Authority .................................................. 258

133. Central Government to prescribe accounting standards ................................................. 261

134. Financial statement, Board’s report, etc. ....................................................................... 262


135. Corporate Social Responsibility ..................................................................................... 266






136. Right of member to copies of audited financial statement ............................................. 268


137. Copy of financial statement to be filed with Registrar .................................................... 270

138. Internal audit ................................................................................................................ 272


CHAPTER X AUDIT AND AUDITORS (Sections 139-148) ............................................. 273

139. Appointment of auditors ............................................................................................... 274


140. Removal, resignation of auditor and giving of special notice .......................................... 278


141. Eligibility, qualifications and disqualifications of auditors ............................................... 281


142. Remuneration of auditors ............................................................................................. 283

143. Powers and duties of auditors and auditing standards ................................................... 284


144. Auditor not to render certain services ........................................................................... 288

145. Auditor to sign audit reports, etc. .................................................................................. 289

146. Auditors to attend general meeting ............................................................................... 290

147. Punishment for contravention ....................................................................................... 291

148. Central Government to specify audit of items of cost in respect of certain companies .... 292

CHAPTER XI APPOINTMENT AND QUALIFICATIONS OF DIRECTORS (Sections 149-172) . 294

149. Company to have Board of Directors ............................................................................. 295


150. Manner of selection of independent directors and maintenance of databank of

independent directors .......................................................................................................... 300


151. Appointment of director elected by small shareholders ................................................. 301

152. Appointment of directors .............................................................................................. 302


153. Application for allotment of Director Identification Number .......................................... 305

154. Allotment of Director Identification Number ................................................................. 306

155. Prohibition to obtain more than one Director Identification Number ............................. 307

156. Director to intimate Director Identification Number ...................................................... 308

157. Company to inform Director Identification Number to Registrar .................................... 309

158. Obligation to indicate Director Identification Number .................................................... 310






160. Right of persons other than retiring directors to stand for directorship .......................... 312


161. Appointment of additional director, alternate director and nominee director ................ 314


162. Appointment of directors to be voted individually ......................................................... 316


163. Option to adopt principle of proportional representation for appointment of directors .. 317


164. Disqualifications for appointment of director ................................................................ 318


165. Number of directorships ............................................................................................... 320


166. Duties of directors ........................................................................................................ 322

167. Vacation of office of director ......................................................................................... 323

168. Resignation of director .................................................................................................. 325


169. Removal of directors ..................................................................................................... 326

170. Register of directors and key managerial personnel and their shareholding .................... 328


171. Members’ right to inspect ............................................................................................. 329


172. Punishment .................................................................................................................. 330

CHAPTER XII MEETINGS OF BOARD AND ITS POWERS (Sections 173-195) .................. 331

173. Meetings of Board ........................................................................................................ 332


174. Quorum for meetings of Board ...................................................................................... 334


175. Passing of resolution by circulation ............................................................................... 336

176. Defects in appointment of directors not to invalidate actions taken ............................... 337

177. Audit Committee .......................................................................................................... 338


178. Nomination and Remuneration Committee and Stakeholders Relationship Committee .. 341


179. Powers of Board ........................................................................................................... 343






180. Restrictions on powers of Board .................................................................................... 345


181. Company to contribute to bona fide and charitable funds, etc. ...................................... 347

182. Prohibitions and restrictions regarding political contributions ........................................ 348

183. Power of Board and other persons to make contributions to national defence fund, etc. 350

184. Disclosure of interest by director ................................................................................... 351


185. Loan to directors, etc. ................................................................................................... 353


186. Loan and investment by company ................................................................................. 356


187. Investments of company to be held in its own name ...................................................... 360

188. Related party transactions ............................................................................................ 362


189. Register of contracts or arrangements in which directors are interested......................... 365


190. Contract of employment with managing or whole-time directors ................................... 366

191. Payment to director for loss of office, etc., in connection with transfer of undertaking,

property or shares ................................................................................................................ 367

192. Restriction on non-cash transactions involving directors ................................................ 369

193. Contract by One Person Company ................................................................................. 370

194. [Omitted] ..................................................................................................................... 371

195. [Omitted] ..................................................................................................................... 372

CHAPTER XIII APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL (Sections

196-205) ............................................................................................................................ 373

196. Appointment of managing director, whole-time director or manager ............................. 374


197. Overall maximum managerial remuneration and managerial remuneration in case of

absence or inadequacy of profits .......................................................................................... 376


198. Calculation of profits ..................................................................................................... 380

199. Recovery of remuneration in certain cases .................................................................... 383

200. Central Government or company to fix limit with regard to remuneration ..................... 384

201. Forms of, and procedure in relation to, certain applications ........................................... 385

202. Compensation for loss of office of managing or whole-time director or manager ............ 386

203. Appointment of key managerial personnel .................................................................... 387






204. Secretarial audit for bigger companies ........................................................................... 389

205. Functions of company secretary .................................................................................... 390

CHAPTER XIV INSPECTION, INQUIRY AND INVESTIGATION (Sections 206-229) ............ 391

206. Power to call for information, inspect books and conduct inquiries ................................ 392

207. Conduct of inspection and inquiry ................................................................................. 394

208. Report on inspection made ........................................................................................... 395

209. Search and seizure ........................................................................................................ 396

210. Investigation into affairs of company ............................................................................ 397

211. Establishment of Serious Fraud Investigation Office ....................................................... 398

212. Investigation into affairs of Company by Serious Fraud Investigation Office ................... 399

213. Investigation into company’s affairs in other cases ........................................................ 402

214. Security for payment of costs and expenses of investigation .......................................... 404

215. Firm, body corporate or association not to be appointed as inspector ............................ 405

216. Investigation of ownership of company ......................................................................... 406

217. Procedure, powers, etc., of inspectors ........................................................................... 407

218. Protection of employees during investigation ................................................................ 410

219. Power of inspector to conduct investigation into affairs of related companies, etc. ........ 411

220. Seizure of documents by inspector ................................................................................ 412

221. Freezing of assets of company on inquiry and investigation ........................................... 413

222. Imposition of restrictions upon securities ...................................................................... 414

223. Inspector’s report ......................................................................................................... 415

224. Actions to be taken in pursuance of inspector’s report ................................................... 416

225. Expenses of investigation .............................................................................................. 418

226. Voluntary winding up of company, etc., not to stop investigation proceedings ............... 419

227. Legal advisers and bankers not to disclose certain information ...................................... 420

228. Investigation, etc., of foreign companies ....................................................................... 421

229. Penalty for furnishing false statement, mutilation, destruction of documents ................ 422

CHAPTER XV COMPROMISES, ARRANGEMENTS AND AMALGAMATIONS (Sections 230-240)

................................................................................................................................................ 423

230. Power to compromise or make arrangements with creditors and members ................... 424


231. Power of Tribunal to enforce compromise or arrangement ............................................ 428


232. Merger and amalgamation of companies ....................................................................... 429


233. Merger or amalgamation of certain companies .............................................................. 433





234. Merger or amalgamation of company with foreign company ......................................... 436

235. Power to acquire shares of shareholders dissenting from scheme or contract approved by

majority ............................................................................................................................... 437

236. Purchase of minority shareholding ................................................................................ 439

237. Power of Central Government to provide for amalgamation of companies in public interest

............................................................................................................................................ 441

238. Registration of offer of schemes involving transfer of shares .......................................... 443

239. Preservation of books and papers of amalgamated companies ...................................... 444

240. Liability of officers in respect of offences committed prior to merger, amalgamation, etc.

............................................................................................................................................ 445

CHAPTER XVI PREVENTION OF OPPRESSION AND MISMANAGEMENT (Sections 241-246)

................................................................................................................................................ 446

241. Application to Tribunal for relief in cases of oppression, etc. .......................................... 447

242. Powers of Tribunal ........................................................................................................ 448

243. Consequence of termination or modification of certain agreements ............................... 450

244. Right to apply under section 241 ................................................................................... 451

245. Class action ................................................................................................................... 452

246. Application of certain provisions to proceedings under section 241 or section 245 ......... 455

CHAPTER XVII REGISTERED VALUERS (Section 247) .................................................... 456

247. Valuation by registered valuers ..................................................................................... 457

CHAPTER XVIII REMOVAL OF NAMES OF COMPANIES FROM THE REGISTER OF COMPANIES

(Sections 248-252) .................................................................................................... 459

248. Power of Registrar to remove name of company from register of companies ................. 460

249. Restrictions on making application under section 248 in certain situations ..................... 462

250. Effect of company notified as dissolved ......................................................................... 463

251. Fraudulent application for removal of name .................................................................. 464

252. Appeal to Tribunal ........................................................................................................ 465

CHAPTER XIX REVIVAL AND REHABILITATION OF SICK COMPANIES (Sections 253-269)

................................................................................................................................................ 466

253. Determination of sickness [Omitted w.e.f. 15-11-2016].................................................. 467

254. Application for revival and rehabilitation [Omitted w.e.f. 15-11-2016] ........................... 468

255. Exclusion of certain time in computing period of limitation [Omitted w.e.f. 15-11-2016] 469

256. Appointment of interim administrator [Omitted w.e.f. 15-11-2016] ............................... 470

257. Committee of creditors [Omitted w.e.f. 15-11-2016] ...................................................... 471

258. Order of Tribunal [Omitted w.e.f. 15-11-2016] ............................................................... 472

259. Appointment of administrator [Omitted w.e.f. 15-11-2016] ........................................... 473





260. Powers and duties of company administrator [Omitted w.e.f. 15-11-2016] .................... 474

261. Scheme of revival and rehabilitation [Omitted w.e.f. 15-11-2016] .................................. 475

262. Sanction of scheme [Omitted w.e.f. 15-11-2016] ........................................................... 476

263. Scheme to be binding [Omitted w.e.f. 15-11-2016] ........................................................ 477

264. Implementation of scheme [Omitted w.e.f. 15-11-2016] ................................................ 478

265. Winding up of company on report of company administrator [Omitted w.e.f. 15-11-2016]

............................................................................................................................................ 479

266. Power of Tribunal to assess damages against delinquent directors, etc. [Omitted w.e.f. 15-

11-2016] .............................................................................................................................. 480

267. Punishment for certain offences [Omitted w.e.f. 15-11-2016] ........................................ 481

268. Bar of jurisdiction [Omitted w.e.f. 15-11-2016] .............................................................. 482

269. Rehabilitation and Insolvency Fund [Omitted w.e.f. 15-11-2016] .................................... 483

CHAPTER XX WINDING UP (Sections 270-365) ........................................................ 484

270. Winding up by Tribunal ................................................................................................. 485

271. Circumstances in which company may be wound up by Tribunal .................................... 486

272. Petition for winding up ................................................................................................. 487

273. Powers of Tribunal ........................................................................................................ 488

274. Directions for filing statement of affairs ........................................................................ 489

275. Company Liquidators and their appointments ............................................................... 490

276. Removal and replacement of liquidator ......................................................................... 491

277. Intimation to Company Liquidator, provisional liquidator and Registrar ......................... 492

278. Effect of winding up order ............................................................................................. 494

279. Stay of suits, etc., on winding up order .......................................................................... 495

280. Jurisdiction of Tribunal .................................................................................................. 496

281. Submission of report by Company Liquidator ................................................................ 497

282. Directions of Tribunal on report of Company Liquidator ................................................. 499

283. Custody of company's properties .................................................................................. 500

284. Promoters, directors, etc., to cooperate with Company Liquidator ................................. 501

285. Settlement of list of contributories and application of assets ......................................... 502

286. Obligations of directors and managers .......................................................................... 503

287. Advisory committee ...................................................................................................... 504

288. Submission of periodical reports to Tribunal .................................................................. 505

289. Power of Tribunal on application for stay of winding up [Omitted w.e.f. 15-11-2016] ..... 506

290. Powers and duties of Company Liquidator ..................................................................... 507

291. Provision for professional assistance to Company Liquidator ......................................... 509

292. Exercise and control of Company Liquidator's powers .................................................... 510





293. Books to be kept by Company Liquidator ....................................................................... 511

294. Audit of Company Liquidator's accounts ........................................................................ 512

295. Payment of debts by contributory and extent of set-off ................................................. 513

296. Power of Tribunal to make calls .................................................................................... 514

297. Adjustment of rights of contributories ........................................................................... 515

298. Power to order costs ..................................................................................................... 516

299. Power to summon persons suspected of having property of company, etc. .................... 517

300. Power to order examination of promoters, directors, etc. .............................................. 518

301. Arrest of person trying to leave India or abscond ........................................................... 520

302. Dissolution of company by Tribunal ............................................................................... 521

303. Appeals from orders made before commencement of Act .............................................. 522

304. Circumstances in which company may be wound up voluntarily [Omitted w.e.f. 15-11-2016]

............................................................................................................................................ 523

305. Declaration of solvency in case of proposal to wind up voluntarily [Omitted w.e.f. 15-11-

2016] ................................................................................................................................... 524

306. Meeting of creditors [Omitted w.e.f. 15-11-2016] .......................................................... 525

307. Publication of resolution to wind up voluntarily [Omitted w.e.f. 15-11-2016] ................. 526

308. Commencement of voluntary winding up [Omitted w.e.f. 15-11-2016] ........................... 527

309. Effect of voluntary winding up [Omitted w.e.f. 15-11-2016] ........................................... 528

310. Appointment of Company Liquidator [Omitted w.e.f. 15-11-2016] ................................. 529

311. Power to remove and fill vacancy of Company Liquidator [Omitted w.e.f. 15-11-2016] ... 530

312. Notice of appointment of Company Liquidator to be given to Registrar [Omitted w.e.f. 15-

11-2016] .............................................................................................................................. 531

313. Cesser of Board's powers on appointment of Company Liquidator [Omitted w.e.f. 15-11-

2016] ................................................................................................................................... 532

314. Powers and duties of Company Liquidator in voluntary winding up [Omitted w.e.f. 15-11-

2016] ................................................................................................................................... 533

315. Appointment of committees [Omitted w.e.f. 15-11-2016] .............................................. 534

316. Company Liquidator to submit report on progress of winding up [Omitted w.e.f. 15-11-

2016] ................................................................................................................................... 535

317. Report of Company Liquidator to Tribunal for examination of persons [Omitted w.e.f. 15-

11-2016] .............................................................................................................................. 536

318. Final meeting and dissolution of company [Omitted w.e.f. 15-11-2016].......................... 537

319. Power of Company Liquidator to accept shares, etc., as consideration for sale of property of

company [Omitted w.e.f. 15-11-2016] .................................................................................. 538

320. Distribution of property of company [Omitted w.e.f. 15-11-2016] .................................. 539

321. Arrangement when binding on company and creditors [Omitted w.e.f. 15-11-2016] ....... 540





322. Power to apply to Tribunal to have questions determined, etc. [Omitted w.e.f. 15-11-2016]

............................................................................................................................................ 541

323. Costs of voluntary winding up [Omitted w.e.f. 15-11-2016] ............................................ 542

324. Debts of all descriptions to be admitted to proof ........................................................... 543

325. Application of insolvency rules in winding up of insolvent companies [Omitted w.e.f. 15-11-

2016] ................................................................................................................................... 544

326. Overriding preferential payments ................................................................................. 545

327. Preferential payments .................................................................................................. 547

328. Fraudulent preference .................................................................................................. 550

329. Transfers not in good faith to be void ............................................................................ 551

330. Certain transfers to be void ........................................................................................... 552

331. Liabilities and rights of certain persons fraudulently preferred ....................................... 553

332. Effect of floating charge ................................................................................................ 554

333. Disclaimer of onerous property ..................................................................................... 555

334. Transfers, etc., after commencement of winding up to be void ...................................... 557

335. Certain attachments, executions, etc., in winding up by Tribunal to be void ................... 558

336. Offences by officers of companies in liquidation ............................................................ 559

337. Penalty for frauds by officers......................................................................................... 561

338. Liability where proper accounts not kept ....................................................................... 562

339. Liability for fraudulent conduct of business ................................................................... 563

340. Power of Tribunal to assess damages against delinquent directors, etc. ......................... 565

341. Liability under sections 339 and 340 to extend to partners or directors in firms or

companies ........................................................................................................................... 566

342. Prosecution of delinquent officers and members of company ........................................ 567

343. Company Liquidator to exercise certain powers subject to sanction ............................... 568

344. Statement that company is in liquidation ...................................................................... 569

345. Books and papers of company to be evidence................................................................ 570

346. Inspection of books and papers by creditors and contributories ..................................... 571

347. Disposal of books and papers of company ..................................................................... 572

348. Information as to pending liquidations .......................................................................... 573

349. Official Liquidator to make payments into public account of India .................................. 575

350. Company Liquidator to deposit monies into scheduled bank .......................................... 576

351. Liquidator not to deposit monies into private banking account ...................................... 577

352. Company Liquidation Dividend and Undistributed Assets Account ................................. 578

353. Liquidator to make returns, etc. .................................................................................... 580

354. Meetings to ascertain wishes of creditors or contributories ........................................... 581





355. Court, tribunal or person, etc., before whom affidavit may be sworn ............................. 582

356. Powers of Tribunal to declare dissolution of company void ............................................ 583

357. Commencement of winding up by Tribunal .................................................................... 584

358. Exclusion of certain time in computing period of limitation ............................................ 585

359. Appointment of Official Liquidator ................................................................................ 586

360. Powers and functions of Official Liquidator.................................................................... 587

361. Summary procedure for liquidation ............................................................................... 588

362. Sale of assets and recovery of debts due to company ..................................................... 589

363. Settlement of claims of creditors by Official Liquidator .................................................. 590

364. Appeal by creditor ........................................................................................................ 591

365. Order of dissolution of company ................................................................................... 592

CHAPTER XXI PART I - COMPANIES AUTHORISED TO REGISTER UNDER THIS ACT (Sections

366-374) ............................................................................................................................ 593

366. Companies capable of being registered ......................................................................... 594

367. Certificate of registration of existing companies ............................................................ 596

368. Vesting of property on registration ................................................................................ 597

369. Saving of existing liabilities ........................................................................................... 598

370. Continuation of pending legal proceedings .................................................................... 599

371. Effect of registration under this Part .............................................................................. 600

372. Power of Court to stay or restrain proceedings .............................................................. 602

373. Suits stayed on winding up order .................................................................................. 603

374. Obligations of companies registering under this Part ..................................................... 604

CHAPTER XXI PART II - Winding up of unregistered companies (Sections 375-378)

................................................................................................................................................ 605

375. Winding up of unregistered companies ......................................................................... 606

376. Power to wind up foreign companies, although dissolved .............................................. 608

377. Provisions of Chapter cumulative .................................................................................. 609

378. Saving and construction of enactments conferring power to wind up partnership firm,

association or company, etc., in certain cases ....................................................................... 610

CHAPTER XXII COMPANIES INCORPORATED OUTSIDE INDIA (Sections 379-393) ......... 611

379. Application of Act to foreign companies ........................................................................ 612

380. Documents, etc., to be delivered to Registrar by foreign companies ............................... 613

381. Accounts of foreign company ........................................................................................ 614

382. Display of name, etc., of foreign company ..................................................................... 615

383. Service on foreign company .......................................................................................... 616





384. Debentures, annual return, registration of charges, books of account and their inspection

............................................................................................................................................ 617


385. Fee for registration of documents ................................................................................. 619

386. Interpretation ............................................................................................................... 620

387. Dating of prospectus and particulars to be contained therein ......................................... 621

388. Provisions as to expert’s consent and allotment ............................................................ 623

389. Registration of prospectus ............................................................................................ 624

390. Offer of Indian Depository Receipts ............................................................................... 625

391. Application of sections 34 to 36 and Chapter XX ............................................................ 626


393. Company's failure to comply with provisions of this Chapter not to affect validity of

contracts, etc. ...................................................................................................................... 628

CHAPTER XXIII GOVERNMENT COMPANIES (Sections 394-395) ................................. 629

394. Annual reports on Government companies .................................................................... 630

395. Annual reports where one or more State Governments are members of companies ....... 631

CHAPTER XXIV REGISTRATION OFFICES AND FEES (Sections 396-404) ...................... 632

396. Registration offices ....................................................................................................... 633

397. Admissibility of certain documents as evidence ............................................................. 634

398. Provisions relating to filing of applications, documents, inspection, etc., in electronic form

............................................................................................................................................ 635

399. Inspection, production and evidence of documents kept by Registrar ............................ 637

400. Electronic form to be exclusive, alternative or in addition to physical form..................... 638

401. Provision of value added services through electronic form ............................................. 639

402. Application of provisions of Information Technology Act, 2000 ...................................... 640

403. Fee for filing, etc. .......................................................................................................... 641


404. Fees, etc., to be credited into public account ................................................................. 643

CHAPTER XXV COMPANIES TO FURNISH INFORMATION OR STATISTICS (Section 405) ...... 644

405. Power of Central Government to direct companies to furnish information or statistics ... 645

CHAPTER XXVI NIDHIS (Section 406) ........................................................................ 646

406. Provision relating to Nidhis and its application, etc. ....................................................... 647

CHAPTER XXVII NATIONAL COMPANY LAW TRIBUNAL AND APPELLATE TRIBUNAL (Sections

407-434) ............................................................................................................................ 648

407. Definitions .................................................................................................................... 649

408. Constitution of National Company Law Tribunal ............................................................ 650





409. Qualification of President and Members of Tribunal ...................................................... 652

410. Constitution of Appellate Tribunal ................................................................................. 653

411. Qualifications of chairperson and Members of Appellate Tribunal .................................. 654

412. Selection of Members of Tribunal and Appellate Tribunal .............................................. 655

413. Term of office of President, chairperson and other Members ......................................... 656

414. Salary, allowances and other terms and conditions of service of Members ..................... 657

415. Acting President and Chairperson of Tribunal or Appellate Tribunal ............................... 658

416. Resignation of Members ............................................................................................... 659

417. Removal of Members .................................................................................................... 660

418. Staff of Tribunal and Appellate Tribunal ........................................................................ 661

419. Benches of Tribunal ...................................................................................................... 662

420. Orders of Tribunal ......................................................................................................... 663

421. Appeal from orders of Tribunal ..................................................................................... 664

422. Expeditious disposal by Tribunal and Appellate Tribunal ................................................ 665

423. Appeal to Supreme Court .............................................................................................. 666

424. Procedure before Tribunal and Appellate Tribunal ......................................................... 667

425. Power to punish for contempt ....................................................................................... 669

426. Delegation of powers .................................................................................................... 670

427. President, Members, officers, etc., to be public servants ................................................ 671

428. Protection of action taken in good faith ......................................................................... 672

429. Power to seek assistance of Chief Metropolitan Magistrate, etc. .................................... 673

430. Civil court not to have jurisdiction ................................................................................. 674

431. Vacancy in Tribunal or Appellate Tribunal not to invalidate acts or proceedings ............. 675

432. Right to legal representation ......................................................................................... 676

433. Limitation ..................................................................................................................... 677

434. Transfer of certain pending proceedings ........................................................................ 678

CHAPTER XXVIII SPECIAL COURTS (Sections 435-446) ............................................ 680

435. Establishment of Special Courts ..................................................................................... 681

436. Offences triable by Special Courts ................................................................................. 683

437. Appeal and revision ...................................................................................................... 685

438. Application of Code to proceedings before Special Court ............................................... 686

439. Offences to be noncognizable ....................................................................................... 687


440. Transitional provisions .................................................................................................. 688

441. Compounding of certain offences .................................................................................. 689





442. Mediation and Conciliation Panel .................................................................................. 691

443. Power of Central Government to appoint company prosecutors .................................... 692

444. Appeal against acquittal ................................................................................................ 693

445. Compensation for accusation without reasonable cause ................................................ 694

446. Application of fines ....................................................................................................... 695

446A. Factors for determining level of punishment ............................................................... 696

446B. Lesser penalties for One Person Companies or small companies .................................. 697

CHAPTER XXIX MISCELLANEOUS (Sections 447-470) ................................................ 698

447. Punishment for fraud .................................................................................................... 699

448. Punishment for false statement .................................................................................... 700

449. Punishment for false evidence ...................................................................................... 701

450. Punishment where no specific penalty or punishment is provided ................................. 702

451. Punishment in case of repeated default ......................................................................... 703

452. Punishment for wrongful withholding of property ......................................................... 704

453. Punishment for improper use of “Limited” or “Private Limited” ..................................... 705

454. Adjudication of penalties .............................................................................................. 706

455. Dormant company ........................................................................................................ 707

456. Protection of action taken in good faith ......................................................................... 708

457. Nondisclosure of information in certain cases ................................................................ 709

458. Delegation by Central Government of its powers and functions ..................................... 710

459. Powers of Central Government or Tribunal to accord approval, etc., subject to conditions

and to prescribe fees on applications .................................................................................... 711

460. Condonation of delay in certain cases ............................................................................ 712

461. Annual report by Central Government ........................................................................... 713

462. Power to exempt class or classes of companies from provisions of this Act ..................... 714

463. Power of court to grant relief in certain cases ................................................................ 715

464. Prohibition of association or partnership of persons exceeding certain number .............. 716

465. Repeal of certain enactments and savings ..................................................................... 717

466. Dissolution of Company Law Board and consequential provisions .................................. 719

467. Power of Central Government to amend Schedules ....................................................... 721

468. Powers of Central Government to make rules relating to winding up ............................. 722

469. Power of Central Government to make rules ................................................................. 723

470. Power to remove difficulties ......................................................................................... 724

PART-IXA of Companies Act 1956 PRODUCER COMPANIES (Section 581A-581ZL)

................................................................................................................................................ 725

CHAPTER I: PRODUCER COMPANIES ...................................................................................... 726





581A. DEFINITIONS .................................................................................................................. 726

CHAPTER II: INCORPORATION OF PRODUCER COMPANIES AND OTHER MATTERS .................. 727

581B. OBJECTS OF PRODUCER COMPANY .......................................................................... 727

581C. FORMATION OF PRODUCER COMPANY AND ITS REGISTRATION ........................ 728

581D. MEMBERSHIP AND VOTING RIGHTS OF MEMBERS OF PRODUCER COMPANY 729

581E. BENEFITS TO MEMBERS ............................................................................................... 729

581F. MEMORANDUM OF PRODUCER COMPANY .............................................................. 730

581G. ARTICLES OF ASSOCIATION ........................................................................................ 730

581H. AMENDMENT OF MEMORANDUM ............................................................................. 732

581-I. AMENDMENT OF ARTICLES ........................................................................................ 732

581J. OPTION TO INTER-STATE CO-OPERATIVE SOCIETIES TO BECOME PRODUCER

COMPANIES .............................................................................................................................. 733

581K. EFFECT OF INCORPORATION OF PRODUCER COMPANY ..................................... 734

581L. VESTING OF UNDERTAKING IN PRODUCER COMPANY ......................................... 734

581M. CONCESSION, ETC., TO BE DEEMED TO HAVE BEEN GRANTED TO PRODUCER

COMPANY .................................................................................................................................. 735

581N. PROVISIONS IN RESPECT OF OFFICERS AND OTHER EMPLOYEES OF INTER-

STATE CO-OPERATIVE SOCIETY ............................................................................................ 735

CHAPTER III: MANAGEMENT OF PRODUCER COMPANY ......................................................... 736

581-O. NUMBER OF DIRECTORS ............................................................................................ 736

581P. APPOINTMENT OF DIRECTORS .................................................................................. 736

581Q. VACATION OF OFFICE BY DIRECTORS ..................................................................... 737

581R. POWERS AND FUNCTIONS OF BOARD ....................................................................... 737

581S. MATTERS TO BE TRANSACTED AT GENERAL MEETING .......................................... 738

581T. LIABILITY OF DIRECTORS ............................................................................................ 738

581U. COMMITTEE OF DIRECTORS ...................................................................................... 739

581V. MEETINGS OF BOARD AND QUORUM ....................................................................... 739

581W. CHIEF EXECUTIVE AND HIS FUNCTIONS ................................................................ 740

581X. SECRETARY OF PRODUCER COMPANY ..................................................................... 741

581Y. QUORUM ......................................................................................................................... 741

581Z. VOTING RIGHTS ............................................................................................................. 741

CHAPTER IV: GENERAL MEETINGS ......................................................................................... 741

581ZA. ANNUAL GENERAL MEETINGS .................................................................................. 741

CHAPTER V: SHARE CAPITAL AND MEMBERS RIGHTS ............................................................. 743

581ZB. SHARE CAPITAL ........................................................................................................... 743

581ZC. SPECIAL USER RIGHTS ............................................................................................... 743

581ZD. TRANSFERABILITY OF SHARES AND ATTENDANT RIGHTS .................................. 743

CHAPTER VI: FINANCE, ACCOUNTS AND AUDIT ..................................................................... 744





581ZE. BOOKS OF ACCOUNT ................................................................................................. 744

581ZF. INTERNAL AUDIT ......................................................................................................... 744

581ZG. DUTIES OF AUDITOR UNDER THIS PART ............................................................... 744

581ZH. DONATIONS OR SUBSCRIPTION BY PRODUCER COMPANY ................................ 745

581ZI. GENERAL AND OTHER RESERVES ............................................................................. 745

581ZJ. ISSUE OF BONUS SHARES ........................................................................................... 745

CHAPTER VII: LOANS TO MEMBERS AND INVESTMENTS ........................................................ 745

581ZK. LOAN, ETC., TO MEMBERS ......................................................................................... 745

581ZL. INVESTMENT IN OTHER COMPANIES, FORMATION OF SUBSIDIARIES, ETC .... 746

SCHEDULE – I ....................................................................................................................... 747

TABLE –A.............................................................................................................................. 748

MEMORANDUM OF ASSOCIATION OF A COMPANY LIMITED BY SHARES ..................... 748

TABLE -B .............................................................................................................................. 750

MEMORANDUM OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND NOT

HAVING A SHARE CAPITAL..................................................................................................... 750

TABLE -C............................................................................................................................... 752

MEMORANDUM OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND

HAVING A SHARE CAPITAL..................................................................................................... 752

TABLE -D .............................................................................................................................. 754

MEMORANDUM OF ASSOCIATION OF AN UNLIMITED COMPANY AND NOT HAVING

SHARE CAPITAL ........................................................................................................................ 754

TABLE -E ............................................................................................................................... 756

MEMORANDUM OF ASSOCIATION OF AN UNLIMITED COMPANY AND HAVING SHARE

CAPITAL ..................................................................................................................................... 756

TABLE -F ............................................................................................................................... 758

ARTICLES OF ASSOCIATION OF A COMPANY LIMITED BY SHARES ................................ 758

TABLE – G ............................................................................................................................. 774

ARTICLES OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND HAVING A

SHARE CAPITAL ........................................................................................................................ 774

TABLE - H ............................................................................................................................. 775

ARTICLES OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND NOT

HAVING SHARE CAPITAL ........................................................................................................ 775

TABLE – I .............................................................................................................................. 780

ARTICLES OF ASSOCIATION OF AN UNLIMITED COMPANY AND HAVING A SHARE

CAPITAL ..................................................................................................................................... 780

TABLE - J .............................................................................................................................. 781

ARTICLES OF ASSOCIATION OF AN UNLIMITED COMPANY AND NOT HAVING SHARE

CAPITAL ..................................................................................................................................... 781

SCHEDULE – II ...................................................................................................................... 782





USEFUL LIVES TO COMPUTE DEPRECIATION .......................................................................... 783

PART ‘A’ ..................................................................................................................................... 783

PART ‘B’ ..................................................................................................................................... 786

PART ‘C’ ..................................................................................................................................... 787

SCHEDULE – III ..................................................................................................................... 792

Division I .............................................................................................................................. 793

GENERAL INSTURCTIONS FOR PREPARATION OF BALANCE SHEET AND STATEMENT

OF PROFIT AND LOSS OF A COMPANY”. ............................................................................. 793

PART I — BALANCE SHEET ..................................................................................................... 795

PART II – STATEMENT OF PROFIT AND LOSS ..................................................................... 808

Division II ............................................................................................................................. 815

GENERAL INSTURCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS OF A

COMPANY REQUIRED TO COMPLY WITH Ind AS ................................................................ 815

PART I –BALANCE SHEET ....................................................................................................... 817

PART II – STATEMENT OF PROFIT AND LOSS ..................................................................... 833

SCHEDULE – IV ..................................................................................................................... 839

CODE FOR INDEPENDENT DIRECTORS ................................................................................... 840

SCHEDULE – V ...................................................................................................................... 845

PART I .................................................................................................................................. 846

APPOINTMENTS ....................................................................................................................... 846

PART II ................................................................................................................................. 848

REMUNERATION ...................................................................................................................... 848

PART III ................................................................................................................................ 854

Provisions applicable to Parts I and II of this Schedule ............................................................. 854

PART IV ................................................................................................................................ 855

SCHEDULE – VI ..................................................................................................................... 856

SCHEDULE - VII .................................................................................................................... 859

Notified Rules .................................................................................................................. 862

The Companies (Specification of Definitions Details) Rules, 2014 ........................................... 863

1. Short title and commencement: ............................................................................................... 863

2. Definitions: ............................................................................................................................. 863

3. Related party: .......................................................................................................................... 865

4. List of relatives in terms of clause (77) of section 2: .............................................................. 865

The Companies (Incorporation) Rules, 2014 .......................................................................... 866


2. Definitions: ............................................................................................................................. 866





3. One Person Company: ............................................................................................................ 866

4. Nomination by the subscriber or member of One Person Company: ..................................... 867

5. Penalty: [Omitted w.e.f. 01.05.2015] ...................................................................................... 868

6. One Person Company to convert itself into a public company or a private company in certain

cases:........................................................................................................................................... 868

7. Conversion of private company into One Person Company: .................................................. 869

7A. Penalty: ................................................................................................................................. 870

8. Undesirable names: ................................................................................................................ 870

9. Reservation of name: .............................................................................................................. 875

10. Where Articles Contains Entrenchment Provisions: ............................................................. 875

11. Model Articles ....................................................................................................................... 875

12. Application for incorporation of companies: ........................................................................ 875

13. Signing of memorandum and articles: .................................................................................. 876

14. Declaration by professionals: ............................................................................................... 877

15. Affidavit from subscribers and first directors: ...................................................................... 877

16. Particulars of every subscriber to be filed with the Registrar at the time of incorporation: 877

17. Particulars of first directors of the company and their consent to act as such: ................... 879

18. Certificate of incorporation: ................................................................................................. 880

19. License under section 8 for new companies with charitable objects etc.: ............................ 880

20. License for existing companies: ............................................................................................ 880

21. Conditions for conversion of a company registered under Section 8 into a company of any

other kind: ................................................................................................................................... 882

22. Other conditions to be complied with by companies registered under section 8 seeking

conversion into any other kind: .................................................................................................. 882

23. Intimation to Registrar of revocation of licence issued under section 8: ............................. 884

24. Declaration at the time of commencement of business: [Omitted w.e.f. 29-05-2015] .......... 885

25. Verification of registered office: ........................................................................................... 885

26. Publication of name by company: ......................................................................................... 885

27. Notice and verification of change of situation of the registered office: ................................ 885

28. Shifting of registered office within the same State: ............................................................... 885

29. Alteration of Memorandum by change of name: ................................................................... 886

30. Shifting of registered office from one State or Union territory to another State: ................. 886

31. Certified Copy of Central Government's Order .................................................................... 888

32. Change of objects for which money is raised through prospectus. ....................................... 888

33. Alteration of articles: ............................................................................................................ 889

34. Copies of memorandum and articles, etc. to be given to members on request being made by

them: ........................................................................................................................................... 889

35. Service of documents: ........................................................................................................... 889





36. Integrated Process for Incorporation [Omitted w.e.f. 01.01.2017] ...................................... 891

37. Conversion of unlimited liability company into a limited liability company by shares or

guarantee: ................................................................................................................................... 891

38. Simplified Proforma for Incorporating Company Electronically (SPICe): .......................... 893

39. Conversion of a company limited by guarantee into a company limited by shares: ............ 894

The Companies (Prospectus and Allotment of Securities) Rules, 2014 .................................... 896


2. Definitions: ............................................................................................................................. 896

3. Information to be stated in the prospectus:............................................................................. 896

4. Reports to be set out in the Prospectus: .................................................................................. 899

5. Other matters and reports to be stated in the prospectus: ...................................................... 900

6. Period for which information to be provided in certain cases: .............................................. 903

7. Variation in terms of contracts referred to in the prospectus or objects for which prospectus

was issued: .................................................................................................................................. 903

8. Offer of Sale by Members: ...................................................................................................... 904

9. Dematerialisation of securities: .............................................................................................. 904

10. Shelf prospectus and Information Memorandum: ................................................................. 904

11. Refund of Application Money: .............................................................................................. 904

12. Return of Allotment: .............................................................................................................. 905

13. Payment of commission: ....................................................................................................... 905

14. Private Placement: ................................................................................................................ 906

The Companies (Issue of Global Depository Receipts) Rules, 2014 ......................................... 909

1. Short Title and Commencement: ............................................................................................. 909

2. Definitions: ............................................................................................................................. 909

3. Eligibility to Issue Depository Receipts: ................................................................................. 909

4. Conditions for Issue of Depository Receipts:.......................................................................... 909

5. Manner and Form of Depository Receipts: ............................................................................ 910

6. Voting Rights: ......................................................................................................................... 910

7. Proceeds of Issue: ................................................................................................................... 910

8. Depository Receipts Prior to Commencement: ....................................................................... 910

9. Non-Applicability of Certain Provisions of the Act: ............................................................... 910

The Companies (Share Capital and Debentures) Rules, 2014 .................................................. 912


2. Definitions: ............................................................................................................................. 912

3. Application: ............................................................................................................................. 913

4. Equity shares with differential rights: .................................................................................... 913

5. Certificate of shares (where shares are not in demat form): .................................................. 915

6. Issue of renewed or duplicate share certificate: ..................................................................... 917





7. Maintenance of share certificate forms and related books and documents: ........................... 918

8. Issue of sweat equity shares: ................................................................................................... 918

9. Issue and redemption of preference shares: ........................................................................... 922

10. Issue and redemption of preference shares by company in infrastructural projects: ........... 923

11. Instrument of transfer: .......................................................................................................... 923

12. Issue of employee stock options: ........................................................................................... 923

13. Issue of shares on preferential basis:.................................................................................... 927

14. Issue of Bonus Shares: .......................................................................................................... 930

15. Notice to Registrar for alteration of share capital: .............................................................. 930

16. Provision of Money by Company for Purchase of its Own Shares by Employees or by

Trustees for the Benefit of Employees: ....................................................................................... 930

17. Buy-back of shares or other securities: ................................................................................ 932

18. Debentures: ........................................................................................................................... 936

19. Nomination by securities holders: ........................................................................................ 941

The National Company Law Tribunal (Procedure for reduction of share capital of Company)

Rules, 2016 .......................................................................................................................... 943

1. Short title and Commencement: .............................................................................................. 943

2. Form of application or petition for Reduction of share capital under section 66: ................. 943

3. Issue of notice and directions by the National Company Law Tribunal: ................................ 944

4. Representation by Central Government, Registrar etc. under sub-section (2) of section 66: 944

5. Procedure with regard to representations and objections received: ...................................... 945

6. Order on application and Minute thereof: .............................................................................. 945

The Companies (Acceptance of Deposits) Rules, 2014 ............................................................ 946

1. Short title, commencement and application: ........................................................................... 946

2. Definitions: ............................................................................................................................. 946

3. Terms and conditions of acceptance of deposits by companies: ............................................. 952

4. Form and particulars of advertisements or circulars: ............................................................ 954

5. Manner and extent of deposit insurance: ................................................................................ 955

6. Creation of security: ............................................................................................................... 956

7. Appointment of trustee for depositors: .................................................................................... 956

8. Duties of trustees: ................................................................................................................... 957

9. Meeting of depositors: ............................................................................................................ 957

10. Form of application for deposits: ......................................................................................... 958

11. Power to nominate: ............................................................................................................... 958

12. Furnishing of deposit receipts to depositors:........................................................................ 958

13. Maintenance of liquid assets and creation of deposit repayment reserve account: ............. 958

14. Registers of deposits: ............................................................................................................ 958

15. General provisions regarding premature repayment of deposits: ........................................ 959





16. Return of deposits to be filed with the Registrar: ................................................................. 960

16A. Disclosures in the financial statement:............................................................................... 960

17. Penal rate of interest: ........................................................................................................... 960

18. Power of Central Government to decide certain questions: ................................................. 960

19. Applicability of sections 73 and 74 to eligible companies: ................................................... 960

20. Statement regarding deposits existing as on the date of commencement of the Act: ............ 960

21. Punishment for contravention: .............................................................................................. 961

The Companies (Registration of Charges) Rules, 2014 ............................................................ 962


2. Definitions: ............................................................................................................................. 962

3. Registration of creation or modification of charge: ............................................................... 962

4. Condonation of delay by Registrar: ........................................................................................ 963

5. Application of rules in certain matters: .................................................................................. 963

6. Certificate of registration: ...................................................................................................... 963

7. Register of charges to be kept by the Registrar: ..................................................................... 964

8. Satisfaction of charge: ............................................................................................................ 964

9. Intimation of appointment of Receiver or Manager: .............................................................. 964

10. Company’s register of charges: ............................................................................................ 964

11. Register open for inspection: ................................................................................................ 964

12. Condonation of delay and rectification of register of charges: ............................................ 964

The Companies (Management and Administration) Rules, 2014 ............................................ 966


2. Definitions: ............................................................................................................................. 966

3. Register of members: .............................................................................................................. 966

4. Register of debenture holders or any other security holders: ................................................. 967

5. Maintenance of the Register of members etc. under section 88: ............................................ 967

6. Index of names to be included in Register: ............................................................................. 968

7. Foreign register of members, debenture holders, other security holders or beneficial owners

residing outside India: ................................................................................................................ 969

8. Authentication: ........................................................................................................................ 970

9. Declaration in respect of beneficial interest in any shares: ................................................... 970

10. Closure of register of members or debenture holders or other security holders: ................. 971

11. Annual Return: ...................................................................................................................... 971

12. Extract of annual return: ...................................................................................................... 971

13. Return of changes in shareholding position of promoters and top ten shareholders: .......... 971

14. Inspection of registers, returns etc.: ..................................................................................... 972

15. Preservation of register of members etc. and annual return: ............................................... 972





16. Copies of the registers and annual return: ........................................................................... 972

17. Calling of Extraordinary general meeting by requisitionists: .............................................. 973

18. Notice of the meeting: ........................................................................................................... 973

19. Proxies: ................................................................................................................................. 975

20. Voting though electronic means: .......................................................................................... 975

21. Manner in which the Chairman of meeting shall get the poll process scrutinised and report

thereon: ....................................................................................................................................... 980

22. Procedure to be followed for conducting business through postal ballot: ........................... 981

23. Special Notice: ...................................................................................................................... 983

24. Resolutions and agreements to be filed: ............................................................................... 984

25. Minutes of proceedings of general meeting, meeting of Board of Directors and other

meetings and resolutions passed by postal ballot: ...................................................................... 984

26. Copy of minute book of general meeting: ............................................................................. 985

27. Maintenance and inspection of document in electronic form: .............................................. 985

28. Security of records maintained in electronic form: .............................................................. 986

29. Inspection and copies of records maintained in electronic form: ......................................... 987

30. Penalty: ................................................................................................................................. 987

31. Report on Annual General Meeting: ..................................................................................... 987

The Companies (Declaration and Payment of Dividend) Rules, 2014 ...................................... 988


2. Definitions: ............................................................................................................................. 988

3. Declaration of dividend out of reserves: ................................................................................. 988

The Investor Education and Protection Fund Authority (Appointment of Chairperson and

Members, holding of meetings and provision for offices and officers) Rules, 2016 ................. 990

1. Short title, extent and commencement: ................................................................................... 990

2. Definitions: ............................................................................................................................. 990

3. Establishment of the Authority:............................................................................................... 991

4. Composition of the Authority: ................................................................................................. 991

5. Chairperson of the Authority: ................................................................................................. 991

6. Chief Executive Officer of the Authority: ................................................................................ 992

7. Members of the Authority: ...................................................................................................... 992

8. The term of office of members of the Authority: ..................................................................... 992

9. The number of officers and employees of the Authority: ........................................................ 993

10. Functions of the Authority: ................................................................................................... 993

11. Meetings: ............................................................................................................................... 994

12. Member not to participate in meetings in certain cases: ...................................................... 994

13. Vacancies, etc., not to invalidate proceedings of Authority: ................................................ 994

14. Protection of action taken in good faith: .............................................................................. 995





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......... 997


2. Definitions: ............................................................................................................................. 997

3. Application: ............................................................................................................................. 997

4. Number of posts, classification and level in the pay matrix: .................................................. 997

5. Method of recruitment, eligibility etc.: ................................................................................... 997

6. Procedure for appointment on deputation: ............................................................................. 997

7. Period of deputation: .............................................................................................................. 998

8. Conditions of service: ............................................................................................................. 998

9. Accommodation: ..................................................................................................................... 998

10. Disciplinary Proceedings: .................................................................................................... 998

11. Disqualification: ................................................................................................................... 998

12. Power to relax: ..................................................................................................................... 999

The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund)

Rules, 2016 ........................................................................................................................ 1000

1. Short title, extent and commencement: ................................................................................. 1000

2. Definitions: ........................................................................................................................... 1000

3. Fund: ..................................................................................................................................... 1001

4. Accounts and audit: .............................................................................................................. 1002

5. Statement to be furnished to the Fund: ................................................................................. 1002

6. Manner of transfer of shares under sub-section (6) of section 124 to the Fund:.................. 1004

7. Refunds to claimants from Fund: .......................................................................................... 1006

8. Power to direct payment of amount due to the Fund: ........................................................... 1007

9. Transfer of assets, liabilities, etc., of the existing IEPF to the Authority: ............................ 1008

10. Returns and reports: ........................................................................................................... 1008

11. Protection of action taken in good faith: ............................................................................ 1008

12. Repeal and savings: ............................................................................................................ 1008

The Companies (Accounts) Rules, 2014 ............................................................................... 1010

1. Short title and commencement: ............................................................................................. 1010

2. Definitions: ........................................................................................................................... 1010

2A. Notice of address at which books of account are to be maintained: .................................. 1010

3. Manner of books of account to be kept in electronic mode: ................................................. 1011

4. Conditions regarding maintenance and inspection of certain financial information by

directors: ................................................................................................................................... 1011

4A. Forms and items contained in Financial Statements: ........................................................ 1012

5. Form of Statement containing salient features of financial statements of subsidiaries:....... 1012

6. Manner of consolidation of accounts: .................................................................................. 1012





7. Transitional provisions with respect to Accounting Standards: ........................................... 1013

8. Matters to be included in Board’s report: ............................................................................ 1013

9. Disclosures about CSR Policy: ............................................................................................. 1015

10. Statement containing salient features of financial statements: ........................................... 1015

11. Manner of circulation of financial statements in certain cases: ......................................... 1015

12. Filing of financial statements and fees to be paid thereon: ................................................ 1015

13. Companies required to appoint internal auditor: ............................................................... 1015

The National Financial Reporting Authority (Manner of Appointment and other Terms and

Conditions of Service of Chairperson and Members) Rules, 2018 ......................................... 1017

1. Short Title and Commencement: ........................................................................................... 1017

2. Definitions: ........................................................................................................................... 1017

3. Composition of Authority: ..................................................................................................... 1017

4. Manner of appointment:........................................................................................................ 1018

5. Medical fitness: ..................................................................................................................... 1019

6. Resignation: .......................................................................................................................... 1019

7. Removal from office: ............................................................................................................. 1019

8. Procedure for inquiry of misbehavior or incapacity of the chairperson or a member: ........ 1019

9. Term of Office: ...................................................................................................................... 1020

10. Vacancy: ............................................................................................................................. 1020

11. Salary and allowances: ....................................................................................................... 1020

12. Pension, Gratuity and Provident Fund: .............................................................................. 1020

13. Leave: .................................................................................................................................. 1021

14. Leave and Foreign Travel Sanctioning Authority: ............................................................. 1021

15. House rent allowance: ........................................................................................................ 1021

16. Transport allowance: .......................................................................................................... 1021

17. Declaration of Financial and other Interests: .................................................................... 1021

18. Other conditions of service: ................................................................................................ 1022

19. Oath of office and secrecy: ................................................................................................. 1022

20. Sitting fee and allowances of Part-time Members: ............................................................. 1022

21. Power to Relax: ................................................................................................................... 1022

22. Interpretation: ..................................................................................................................... 1022

The Companies (Indian Accounting Standards) Rules, 2015.................................................. 1024


2. Definitions: ........................................................................................................................... 1024

3. Applicability of Accounting Standards: ................................................................................ 1025

4. Obligation to comply with Indian Accounting Standards (Ind AS): ..................................... 1025

5. Exemptions: ........................................................................................................................... 1027





The Companies (Corporate Social Responsibility Policy) Rules, 2014 .................................... 1028


2. Definitions: ........................................................................................................................... 1028

3. Corporate Social Responsibility: .......................................................................................... 1029

4. CSR Activities: ...................................................................................................................... 1029

5. CSR Committees: .................................................................................................................. 1030

6. CSR Policy: ........................................................................................................................... 1030

7. CSR Expenditure: .................................................................................................................. 1031

8. CSR Reporting: ..................................................................................................................... 1031

9. Display of CSR activities on its website: .............................................................................. 1031

The Companies (Audit and Auditors) Rules, 2014 ................................................................ 1033


2. Definitions: ........................................................................................................................... 1033

3. Manner and procedure of selection and appointment of auditors: ....................................... 1033

4. Conditions for appointment and notice to Registrar: ........................................................... 1034

5. Class of Companies: ............................................................................................................. 1035

6. Manner of rotation of auditors by the companies on expiry of their term: ........................... 1035

7. Removal of the auditor before expiry of his term: ................................................................ 1037

8. Resignation of auditor: ......................................................................................................... 1037

9. Liability to devolve on concerned partners only: ................................................................. 1037

10. Disqualifications of auditor: ............................................................................................... 1037

10A. Rule: ................................................................................................................................. 1038

11. Other matters to be included in auditor’s report: ............................................................... 1038

12. Duties and powers of the company’s auditor with reference to the audit of the branch and the

branch auditor: ......................................................................................................................... 1039

13. Reporting of frauds by auditor and other matters: ............................................................. 1039

14. Remuneration of the Cost Auditor: ..................................................................................... 1040

The Companies (Cost Records and Audit) Rules, 2014 .......................................................... 1041


2. Definitions: ........................................................................................................................... 1041

3. Application of cost records: .................................................................................................. 1042

4. Applicability for cost audit: .................................................................................................. 1046

5. Maintenance of records: ....................................................................................................... 1046

6. Cost audit: ............................................................................................................................. 1047

7. Rules not to apply in certain cases: [Omitted w.e.f. 31.12.2014] ......................................... 1048

The Companies (Appointment and Qualification of Directors) Rules, 2014 ........................... 1049






2. Definitions: ........................................................................................................................... 1049

3. Woman director on the Board: ............................................................................................. 1050

4. Number of independent directors: ........................................................................................ 1050

5. Qualifications of independent director: ................................................................................ 1051

6. Creation and maintenance of databank of persons offering to become independent directors:

.................................................................................................................................................. 1051

7. Small shareholders’ director: ............................................................................................... 1053

8. Consent to act as director: .................................................................................................... 1054

9. Application for allotment of Director Identification Number before appointment in an existing

company: ................................................................................................................................... 1054

10. Allotment of DIN: ................................................................................................................ 1055

10A. Intimation of DIN to Company: ........................................................................................ 1056

11. Cancellation or surrender or Deactivation of DIN: ........................................................... 1056

12. Intimation of changes in particulars specified in DIN application: ................................... 1057

13. Notice of candidature of a person for directorship: ........................................................... 1058

14. Disqualification of directors sub-section (2) of section 164: .............................................. 1058

15. Notice of resignation of director: ........................................................................................ 1058

16. Copy of resignation of director to be forwarded by him: ................................................... 1058

17. Register of directors and key managerial personnel: ......................................................... 1059

18. Return containing the particulars of directors and the key managerial personnel: ........... 1060

The Companies (Meetings of Board and its Powers) Rules, 2014 .......................................... 1061


2. Definitions: ........................................................................................................................... 1061

3. Meetings of Board through video conferencing or other audio visual means: ..................... 1061

4. Matters not to be dealt with in a meeting through video conferencing or other audio visual

means: ....................................................................................................................................... 1064

5. Passing of resolution by circulation: .................................................................................... 1065

6. Committees of the Board: ..................................................................................................... 1065

6A. Omnibus approval for related party transactions on annual basis: ................................... 1065

7. Establishment of vigil mechanism: ....................................................................................... 1066

8. Powers of Board: .................................................................................................................. 1067

9. Disclosures by a director of his interest: .............................................................................. 1067

10. Loans to Director etc. under section 185: [Omitted w.e.f. 14.12.2015] ............................. 1068

11. Loan and investment by a company under section 186 of the Act: ..................................... 1068

12. Register: .............................................................................................................................. 1068

13. Special Resolution: ............................................................................................................. 1069

14. Investments of company to be held in its own name: .......................................................... 1069

15. Contract or arrangement with a related party: .................................................................. 1069





16. Register of contracts or arrangements in which directors are interested: ......................... 1071

17. Payment to director for loss of office, etc. in connection with transfer of undertaking,

property or shares: ................................................................................................................... 1072

The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 ..... 1078


2. Definitions: ........................................................................................................................... 1078

3. Filing of return of appointment: ........................................................................................... 1078

4. Sitting fees: ............................................................................................................................ 1079

5. Disclosure in Board’s report: ............................................................................................... 1079

6. Applications to the Central Government: ............................................................................. 1081

7. Fees: ...................................................................................................................................... 1081

8. Appointment of Key Managerial Personnel:......................................................................... 1082

8A. Appointment of Company Secretaries in companies not covered under rule 8: ................. 1082

9. Secretarial Audit Report: ...................................................................................................... 1082

10. Duties of Company Secretary: ............................................................................................ 1082

The Companies (Inspection, Investigation and Inquiry) Rules, 2014 ..................................... 1083


2. Definitions: ........................................................................................................................... 1083

3. Appointment of persons having expertise in various fields: ................................................. 1083

4. Terms and Condition of service: ........................................................................................... 1083

5. Security: ................................................................................................................................ 1084

6. Letter of Request, as per Section 217: .................................................................................. 1084

The Ministry of Corporate Affairs, Serious Fraud Investigation Office, Additional Director (Capital

Market)/Joint Director (Capital Market) and Additional Director (Financial Transactions)/Joint

Director (Financial Transactions) Group ‘A’ Post Recruitment Rules, 2015 ............................ 1085


2. Application: ........................................................................................................................... 1085

3. Number of posts, classification, level in the pay matrix or pay scale: .................................. 1085

4. Method of recruitment, age-limit, educational qualifications, etc.: ...................................... 1085

5. Disqualifications: .................................................................................................................. 1085

6. Power to relax: ..................................................................................................................... 1086

7. Saving: .................................................................................................................................. 1086

SCHEDULE .............................................................................................................................. 1086

The Ministry of Corporate Affairs, Serious Fraud Investigation Office, Assistant Director

(Investigation), Group 'B' Post Recruitment Rules, 2016 ...................................................... 1090


2. Number of posts, classification, level in the pay matrix: ...................................................... 1090

3. Method of recruitment, age-limit, qualifications, etc.: ......................................................... 1090






5. Power to relax: ..................................................................................................................... 1090

6. Saving: .................................................................................................................................. 1091

SCHEDULE .............................................................................................................................. 1091

The Ministry of Corporate Affairs, Serious Fraud Investigation Office, Assistant Director (Law),

Group "B" Post Recruitment Rules, 2016 ............................................................................. 1093



3. Method of recruitment, age-limit, qualifications, etc.: ......................................................... 1093


5. Power to relax: ..................................................................................................................... 1093

6. Saving: .................................................................................................................................. 1094

SCHEDULE .............................................................................................................................. 1094

The Ministry of Corporate Affairs, Serious Fraud Investigation Office, Prosecutor and Senior

Prosecutor, Group ‘B’ Post Recruitment Rules, 2016 ............................................................ 1096


2. Application: ........................................................................................................................... 1096


4. Method of recruitment, Age-limit, qualifications, etc.: ......................................................... 1096


6. Power to relax: ..................................................................................................................... 1096

7. Saving: .................................................................................................................................. 1097

SCHEDULE .............................................................................................................................. 1097

The Companies (Arrests in connection with Investigation by Serious Fraud Investigation Office)

Rules, 2017 ........................................................................................................................ 1101


2. ............................................................................................................................................... 1101

3. ............................................................................................................................................... 1101

4. ............................................................................................................................................... 1101

5. ............................................................................................................................................... 1101

6. ............................................................................................................................................... 1102

7. ............................................................................................................................................... 1102

8. ............................................................................................................................................... 1102

9. ............................................................................................................................................... 1102

The Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 .................. 1105


2. Definitions: ........................................................................................................................... 1105

3. Application for order of a meeting: ...................................................................................... 1105





4. Disclosures in application made to the Tribunal for compromise or arrangement. -Creditors

Responsibility Statement: .......................................................................................................... 1106

5. Directions at hearing of the application: .............................................................................. 1106

6. Notice of meeting: ................................................................................................................. 1107

7. Advertisement of the notice of the meeting: .......................................................................... 1109

8. Notice to statutory authorities: ............................................................................................. 1110

9. Voting:................................................................................................................................... 1110

10. Proxies: ............................................................................................................................... 1110

11. Copy of compromise or arrangement to be furnished by the company: ............................. 1111

12. Affidavit of service: ............................................................................................................. 1111

13. Result of the meeting to be decided by voting: .................................................................... 1111

14. Report of the result of the meeting by Chairperson: ........................................................... 1112

15. Petition for confirming compromise or arrangement: ........................................................ 1112

16. Date and notice of hearing: ................................................................................................ 1112

17. Order on petition: ............................................................................................................... 1112

18. Application for directions under section 232 of the Act: .................................................... 1112

19. Directions at hearing of application: .................................................................................. 1113

20. Order under section 232 of the Act: .................................................................................... 1113

21. Statement of compliance in mergers and amalgamations: ................................................. 1113

22. Report on working of compromise or arrangement: ........................................................... 1113

23. Liberty to apply: .................................................................................................................. 1113

24. Liberty of the Tribunal: ....................................................................................................... 1113

25. Merger or Amalgamation of certain companies: ................................................................ 1114

26. Notice to dissenting shareholders for acquiring the shares: .............................................. 1115

27. Determination of price for purchase of minority shareholding: ......................................... 1115

28. Circular containing scheme of amalgamation or merger:.................................................. 1116

29. Appeal under sub-section (2) of section 238 of the Act: ..................................................... 1116

The Companies (Registered Valuers and Valuation) Rules, 2017 .......................................... 1117


2. Definitions: ........................................................................................................................... 1117

3. Eligibility for registered valuers: .......................................................................................... 1118

4. Qualifications and experience: ............................................................................................. 1119

5. Valuation Examination: ........................................................................................................ 1120

6. Application for certificate of registration: ............................................................................ 1120

7. Conditions of Registration: ................................................................................................... 1121

8. Conduct of Valuation: ........................................................................................................... 1122

9. Temporary surrender: ........................................................................................................... 1123





10. Functions of a Valuer: ........................................................................................................ 1123

11. Transitional Arrangement: ................................................................................................. 1123

12. Eligibility for registered valuers organisations: ................................................................. 1123

13. Application for recognition: ................................................................................................ 1124

14. Conditions of Recognition: ................................................................................................. 1125

15. Cancellation or suspension of certificate of registration or recognition: .......................... 1126

16. Complaint against a registered valuer or registered valuers organisation: ...................... 1126

17. Procedure to be followed for cancellation or suspension of registration or recognition

certificate: ................................................................................................................................. 1126

18. Valuation Standards: .......................................................................................................... 1128

19. Committee to advise on valuation matters: ......................................................................... 1128

20. Punishment for contravention: ............................................................................................ 1128

21. Punishment for false statement: .......................................................................................... 1129

The Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016

.......................................................................................................................................... 1156


2. Definitions: ........................................................................................................................... 1156

3. Removal of name of company from the Register on suo-motu basis: ................................... 1156

4. Application for removal of name of company: ...................................................................... 1157

5. Manner of filing of application: ............................................................................................ 1158

6. Form to be certified: ............................................................................................................. 1158

7. Manner of publication of notice: .......................................................................................... 1158

8. Manner of notarisation, appostilisation or consularisation of indemnity bond and declaration

in case of foreign nationals or non-resident Indians: ............................................................... 1159

9. Notice of striking off and dissolution of company: ............................................................... 1159

10. Applications or forms pending before Central Government:.............................................. 1159

The Companies (Authorised to Registered) Rules, 2014 ....................................................... 1160


2. Definitions: ........................................................................................................................... 1160

3. Rule: ...................................................................................................................................... 1160

4. Obligation of companies seeking registration to make publication: .................................... 1163

5. Other obligations of companies seeking registration: .......................................................... 1163

The Companies (Registration of Foreign Companies) Rules, 2014 ......................................... 1165


2. Definitions: ........................................................................................................................... 1165

3. Particulars relating to directors and Secretary to be furnished to the Registrar by foreign

Companies: ............................................................................................................................... 1166

4. Financial Statement of foreign company: ............................................................................. 1167





5. Audit of accounts of foreign company: ................................................................................. 1168

6. List of places of business of foreign company: ..................................................................... 1169

7. Annual Return: ...................................................................................................................... 1169

8. Office where documents to be delivered and fee for registration of documents: .................. 1169

9. Certification: ......................................................................................................................... 1169

10. Authentication of translated documents: ............................................................................ 1170

11. Documents to be annexed to prospectus: ............................................................................ 1171

12. Action for improper use or description as foreign company: ............................................. 1171

13. Issue of Indian Depository Receipts (IDRs): ...................................................................... 1171

The Companies (Filing of Documents and Forms in XBRL) Rules, 2015 .................................. 1180


2. Definitions: ........................................................................................................................... 1180

3. Filing of financial statement with Registrar: ........................................................................ 1180

4. Filing of cost audit report: .................................................................................................... 1181

The Companies (Registration Offices and Fees) Rules, 2014 ................................................. 1182


2. Definitions: ........................................................................................................................... 1182

3. Business activity: .................................................................................................................. 1183

4. Registration offices: .............................................................................................................. 1183

5. Powers and duties of Registrars: .......................................................................................... 1183

6. Seal of Registrar: .................................................................................................................. 1184

7. Manner and conditions of filing: .......................................................................................... 1184

8. Authentication of documents: ................................................................................................ 1185

9. Maintaining documents electronically: ................................................................................ 1187

10. Procedure on receipt of any application or form or document electronically: .................. 1187

11. Vacation or removal of directors: ....................................................................................... 1189

12. Fees: .................................................................................................................................... 1189

13. Mode of Payment: ............................................................................................................... 1189

14. Inspection, production and evidence of documents kept by Registrar: ............................... 1189

15. Inspection of documents: .................................................................................................... 1189

I. Fee for Filings etc. under section 403 of the Companies Act, 2013 ...................................... 1190

II. Fee on Applications (including Appeal) made to Central Government under sub-section (2) of

Section 459 of the Companies Act, 2013. .................................................................................. 1195

III. Annual Fee payable by a dormant company under sub-section (5) of section 455 of the

Companies Act, 2013. ............................................................................................................... 1195

IV. Fee for Inspection and providing certified copies of documents kept by the Registrar under

section 399 of the Act. ............................................................................................................... 1196

V. Fee for registration of documents under section 385 of the Act. .......................................... 1196





VI. Fees for Removal of Names of Companies from the Registrar of Companies under section

248 (2) of the Act. ...................................................................................................................... 1196

Nidhi Rules, 2014 ............................................................................................................... 1197


2. Application: ........................................................................................................................... 1197

3. Definitions: ........................................................................................................................... 1197

4. Incorporation and incidental matters: .................................................................................. 1198

5. Requirements for minimum number of members, net owned fund etc.: ................................ 1198

6. General restrictions or prohibitions: .................................................................................... 1199

7. Share capital and allotment: ................................................................................................. 1200

8. Membership: ......................................................................................................................... 1200

9. Net owned funds: ................................................................................................................... 1200

10. Branches: ............................................................................................................................ 1200

11. Acceptance of deposits by Nidhis:....................................................................................... 1201

12. Application form for deposit: .............................................................................................. 1201

13. Deposits ............................................................................................................................... 1203

14. Un-encumbered term deposits: ........................................................................................... 1204

15. Loans: ................................................................................................................................. 1204

16. Rate of interest: ................................................................................................................... 1205

17. Rules relating to Directors: ................................................................................................ 1206

18. Dividend: ............................................................................................................................. 1206

19. Auditor: ............................................................................................................................... 1206

20. Prudential norms: ............................................................................................................... 1206

21. Filing of half yearly return: ................................................................................................ 1208

22. Auditor’s certificate: ........................................................................................................... 1208

23. Power to enforce compliance: ............................................................................................ 1208

24. Penalty for non-compliance: ............................................................................................... 1208

The Companies (Transfer of Pending Proceedings) Rules, 2016 ............................................ 1209

1. Short title and Commencement: ............................................................................................ 1209

2. Definitions: ........................................................................................................................... 1209

3. Transfer of pending proceedings relating to cases other than Winding up: ......................... 1209

4. Pending proceeding relating to Voluntary Winding up: ....................................................... 1209

5. Transfer of pending proceedings of Winding up on the ground of inability to pay debts: ... 1210

6. Transfer of pending proceedings of Winding up matters on the grounds other than inability to

pay debts: .................................................................................................................................. 1210

7. Transfer of Records: ............................................................................................................. 1210

8. Fees not to be paid: ............................................................................................................... 1210





National Company Law Appellate Tribunal (Salaries and Allowances and other terms and

conditions of service of the Chairperson and other Members) Rules, 2015 ........................... 1211


2. Definitions: ........................................................................................................................... 1211

3. Pay: ....................................................................................................................................... 1211

4. Pension, Gratuity or Provident Fund: .................................................................................. 1211

5. Leave: .................................................................................................................................... 1212

6. Leave Sanctioning Authority: ................................................................................................ 1212

7. Travelling Allowances: ......................................................................................................... 1212

8. Official visits abroad: ........................................................................................................... 1212

9. Leave Travel Concession: ..................................................................................................... 1212

10. Facility for Medical Treatment: .......................................................................................... 1213

11. Accommodation: ................................................................................................................. 1213

12. Facility of conveyance: ....................................................................................................... 1213

13. Telephone facility:............................................................................................................... 1213

14. Conditions of service of Chairperson: ................................................................................ 1213

15. Conditions of Service of Judicial Member: ......................................................................... 1213

16. Oath of office and secrecy: ................................................................................................. 1214

17. Declaration of financial or other interest: .......................................................................... 1214

18. Residuary provisions: ......................................................................................................... 1214

19. Powers to relax: .................................................................................................................. 1214

National Company Law Appellate Tribunal Rules, 2016 ....................................................... 1216


2. Definitions: ........................................................................................................................... 1216

3. Computation of time period: ................................................................................................. 1216

4. Forms: ................................................................................................................................... 1217

5. Format of order or direction or rule: ................................................................................... 1217

6. Official seal of the Appellate Tribunal: ................................................................................ 1217

7. Custody of the records: ......................................................................................................... 1217

8. Sitting of Appellate Tribunal: ............................................................................................... 1217

9. Sitting hours of the Appellate Tribunal:................................................................................ 1217

10. Working hours of office: ..................................................................................................... 1217

11. Inherent powers: ................................................................................................................. 1217

12. Calendar: ............................................................................................................................ 1217

13. Listing of cases: .................................................................................................................. 1218

14. Power to exempt: ................................................................................................................ 1218

15. Power to extend time: ......................................................................................................... 1218





16. Powers and functions of the Registrar: ............................................................................... 1218

17. Power of adjournment: ....................................................................................................... 1218

18. Delegation powers of the Chairperson: .............................................................................. 1219

19. Procedure for proceedings: ................................................................................................ 1219

20. Particulars to be set out in the address for service: ........................................................... 1219

21. Initialling alteration:........................................................................................................... 1220

22. Presentation of appeal: ....................................................................................................... 1220

23. Number of copies to be filed ............................................................................................... 1220

24. Endorsement and verification: ............................................................................................ 1220

25. Translation of document: .................................................................................................... 1220

26. Endorsement and scrutiny of petition or appeal or document: ........................................... 1220

27. Registration of proceedings admitted: ................................................................................ 1221

28. Ex-parte amendments: ........................................................................................................ 1221

29. Calling for records: ............................................................................................................ 1221

30. Production of authorisation for and on behalf of an association: ...................................... 1221

31. Interlocutory applications: ................................................................................................. 1221

32. Procedure on production of defaced, torn or damaged documents: ................................... 1222

33. Preparation and publication of daily cause list: ................................................................. 1222

34. Carry forward of cause list and adjournment of cases on account of non-sitting of an

Appellate Tribunal: ................................................................................................................... 1222

35. Diaries: ............................................................................................................................... 1223

36. Order sheet: ........................................................................................................................ 1223

37. Maintenance of diary: ......................................................................................................... 1223

38. Statutes or citations for reference: ...................................................................................... 1223

39. Calling of cases in Bench: .................................................................................................. 1223

40. Regulation of Bench work: .................................................................................................. 1224

41. Registers to be maintained: ................................................................................................. 1224

42. Arrangement of records in pending matters: ...................................................................... 1224

43. Contents of main file: .......................................................................................................... 1224

44. Contents of process file: ...................................................................................................... 1225

45. Execution file: ..................................................................................................................... 1225

46. File for miscellaneous applications: ................................................................................... 1225

47. Destruction of record: ......................................................................................................... 1225

48. Issue of notice: .................................................................................................................... 1226

49. Summons: ............................................................................................................................ 1226

50. Steps for issue of fresh notice: ............................................................................................ 1226

51. Consequence of failure to take steps for issue of fresh notice: ........................................... 1226





52. Entries regarding service of notice or process: .................................................................. 1226

53. Non-appearance of respondent and consequences: ............................................................ 1226

54. Filing of objections by respondent, form and consequences: ............................................. 1227

55. Fee: ..................................................................................................................................... 1227

56. Award of costs in the proceedings: ..................................................................................... 1227

57. Inspection of the records: ................................................................................................... 1227

58. Grant of inspection: ............................................................................................................ 1228

59. Application for grant of inspection: .................................................................................... 1228

60. Fee payable for inspection: ................................................................................................. 1228

61. Mode of inspection: ............................................................................................................. 1228

62. Maintenance of register of inspection: ............................................................................... 1228

63. Appearance of authorised representative: .......................................................................... 1229

64. Proof of engagement: .......................................................................................................... 1229

65. Restriction on party’s right to be heard:............................................................................. 1229

66. Professional dress for the authorised representative: ........................................................ 1229

67. Title of affidavits: ................................................................................................................ 1229

68. Form and contents of the affidavit: ..................................................................................... 1229

69. Persons authorised to attest: ............................................................................................... 1229

70. Affidavits of illiterate, visually challenged persons: ........................................................... 1229

71. Identification of deponent: .................................................................................................. 1230

72. Annexures to the affidavit: .................................................................................................. 1230

73. Application for production of documents, form of summons: ............................................. 1230

74. Suo motu summoning of documents: ................................................................................... 1230

75. Marking of documents: ....................................................................................................... 1230

76. Return and transmission of documents: .............................................................................. 1231

77. Procedure for examination of witnesses, issue of Commissions: ........................................ 1231

78. Examination in camera: ...................................................................................................... 1231

79. Form of oath or affirmation to witness: .............................................................................. 1231

80. Form of oath or affirmation to interpreter: ........................................................................ 1231

81. Officer to administer oath: .................................................................................................. 1231

82. Recording of deposition: ..................................................................................................... 1231

83. Numbering of witnesses: ..................................................................................................... 1231

84. Grant of discharge certificate: ............................................................................................ 1232

85. Witness allowance payable: ................................................................................................ 1232

86. Records to be furnished to the Commissioner: ................................................................... 1232

87. Taking of specimen handwriting, signature etc.: ................................................................ 1232

88. Order: ................................................................................................................................. 1232





89. Operative portion of the order: ........................................................................................... 1232

90. Corrections: ........................................................................................................................ 1232

91. Pronouncement of order: .................................................................................................... 1233

92. Pronouncement of order by any one member of the Bench: ............................................... 1233

93. Authorizing any Member to pronounce order: ................................................................... 1233

94. Making of entries by Court Master: .................................................................................... 1233

95. Transmission of order by the Court Master:....................................................................... 1233

96. Format of order: ................................................................................................................. 1234

97. Indexing of case files after disposal: ................................................................................... 1234

98. Transmission of files or records or orders: ........................................................................ 1234

99. Copies of Orders in library:................................................................................................ 1234

100. Register of Special Leave Petitions/Appeal: ..................................................................... 1234

101. Placing of Supreme Court orders before Appellate Tribunal: .......................................... 1234

102. Registrar to ensure compliance of Supreme Court orders: .............................................. 1235

103. Filling through electronic media: ..................................................................................... 1235

104. Removal of difficulties and issue of directions: ................................................................ 1235

National Company Law Tribunal Rules, 2016 ....................................................................... 1245

1. Short title and Commencement: ............................................................................................ 1245

2. Definitions: ........................................................................................................................... 1245

3. Computation of time period: ................................................................................................. 1247

4. Forms: ................................................................................................................................... 1248

5. Format of order or direction or rule: ................................................................................... 1248

6. Official seal of the Tribunal: ................................................................................................. 1248

7. Custody of the records: ......................................................................................................... 1248

8. Sitting of the Tribunal: .......................................................................................................... 1248

9. Sitting hours: ......................................................................................................................... 1248

10. Working hours: ................................................................................................................... 1248

11. Inherent Powers: ................................................................................................................. 1248

12. Calendar: ............................................................................................................................ 1248

13. Listing of cases: .................................................................................................................. 1249

14. Power to exempt: ................................................................................................................ 1249

15. Power to extend time: ......................................................................................................... 1249

16. Functions of the President: ................................................................................................. 1249

17. Functions of the Registrar: ................................................................................................. 1249

18. Functions of the Secretary: ................................................................................................. 1250

19. Delegation of powers by the President: .............................................................................. 1250

20. Procedure: .......................................................................................................................... 1251





21. Particulars to be set out in the address for service: ........................................................... 1251

22. Initialling alteration:........................................................................................................... 1252

23. Presentation of petition or appeal: ..................................................................................... 1252

23A. Presentation of joint petition: ........................................................................................... 1252

24. Number of copies to be filed: .............................................................................................. 1252

25. Lodging of caveat: .............................................................................................................. 1252

26. Endorsement and Verification: ........................................................................................... 1253

27. Translation of document: .................................................................................................... 1253

28. Endorsement and scrutiny of petition or appeal or document: ........................................... 1253

29. Registration of proceedings admitted: ................................................................................ 1254

30. Calling for records: ............................................................................................................ 1254

31. Production of authorisation for and on behalf of an association: ...................................... 1254

32. Interlocutory applications: ................................................................................................. 1254

33. Procedure on production of defaced, torn or damaged documents: ................................... 1254

34. General Procedure: ............................................................................................................ 1254

35. Advertisement detailing petition: ........................................................................................ 1255

36. Maintenance of Cash Register: ........................................................................................... 1255

37. Notice to Opposite Party: ................................................................................................... 1256

38. Service of Notices and processes: ....................................................................................... 1256

39. Production of Evidence by Affidavit: .................................................................................. 1257

40. Production of additional evidence before the Bench: ......................................................... 1257

41. Filing of Reply and other Documents by the Respondents: ................................................ 1257

42. Filing of Rejoinder: ............................................................................................................. 1258

43. Power of the Bench to call for further information or evidence: ........................................ 1258

44. Hearing of petition or applications: ................................................................................... 1258

45. Rights of a party to appear before the Tribunal: ................................................................ 1258

46. Registration of authorised representative’s interns: ........................................................... 1259

47. Oath to the witness:............................................................................................................. 1259

48. Consequence of non-appearance of applicant: ................................................................... 1259

49. Ex-parte Hearing and disposal: .......................................................................................... 1260

50. Registry to send certified copy: ........................................................................................... 1260

51. Power to regulate the procedure: ....................................................................................... 1260

52. Summoning of witnesses and recording Evidence: ............................................................. 1260

53. Substitution of legal representatives: .................................................................................. 1260

54. Assessors or valuers: .......................................................................................................... 1261

55. Pleadings before the Tribunal: ........................................................................................... 1261

56. Application for execution: ................................................................................................... 1261





57. Issue of process of execution: ............................................................................................. 1261

58. Effect of non-compliance: ................................................................................................... 1261

59. Procedure for imposition of penalty under the Act: ............................................................ 1261

60. Matters relating to the Judgments or Orders of the Tribunal: ........................................... 1262

61. Amicus Curiae: ................................................................................................................... 1262

62. Recusal: ............................................................................................................................... 1262

63. Presentation and scrutiny of petitions or applications: ...................................................... 1263

64. Matter earlier dealt by Company Law Board: .................................................................... 1263

65. Petition or Application under sub-section (2) of section 45QA of the Reserve Bank of India

Act, 1934 (2 of 1934): ............................................................................................................... 1264

66. Application under sub- section (7) of section 7: ................................................................. 1264

67. Petition under sub-section (41) of section 2: ...................................................................... 1265

68. Petition under section 14: ................................................................................................... 1265

69. Petition under sub-section (3) of section 55: ...................................................................... 1266

70. Appeal under sections 58 and 59: ....................................................................................... 1267

71. Application under proviso to clause (b) of sub-section (1) of section 61: .......................... 1268

72. Appeal against the order of the Government under Section 62(4): .................................... 1268

73. Application under sections 71(9), 71(10), section 73(4) or section 74(2) and 76(2): ........ 1269

74. Application for calling or obtaining a direction to call annual general meeting: .............. 1270

75. Application for obtaining an order for calling of general meeting (other than Annual General

Meeting): ................................................................................................................................... 1270

76. Inspection of minute-books of general meeting: ................................................................. 1270

77. Application under section 131: ........................................................................................... 1270

78. Application under Section 140: ........................................................................................... 1271


80. Application under section 213 for investigation: ................................................................ 1272


82. Withdrawal of Application filed under section 241: ........................................................... 1272


84. Right to apply under section 245: ....................................................................................... 1272

85. Conducting a class action suit: ........................................................................................... 1273

86. Rule of opt-out: ................................................................................................................... 1273

87. Publication of notice: .......................................................................................................... 1273

87A. Appeal or application under sub-section (1) and sub-section (3) of section 252: ............ 1274

88. Reference to the Tribunal: .................................................................................................. 1275

89. Preparation and publication of daily cause list: ................................................................. 1275

90. Carry forward of cause list and adjournment of cases on account of non-sitting of a Bench:

.................................................................................................................................................. 1276





91. Diaries: ............................................................................................................................... 1276

92. Order sheet: ........................................................................................................................ 1276

93. Maintenance of court diary: ............................................................................................... 1277

94. Statutes or citations for reference: ...................................................................................... 1277

95. Calling of cases in court: .................................................................................................... 1277

96. Regulation of court work: ................................................................................................... 1277

97. Registers to be maintained: ................................................................................................. 1277

98. Arrangement of records in pending matters: ...................................................................... 1278

99. Contents of main file: .......................................................................................................... 1278

100. Contents of process file: .................................................................................................... 1278

101. Execution file: ................................................................................................................... 1279

102. File for miscellaneous applications: ................................................................................. 1279

103. Preservation of Record: .................................................................................................... 1279

104. Retention, Preservation and Destruction of Records: ...................................................... 1279

105. Issue of notice: .................................................................................................................. 1279

106. Summons: .......................................................................................................................... 1280

107. Steps for issue of fresh notice: .......................................................................................... 1280

108. Consequence of failure to take steps for issue of fresh notice: ......................................... 1280

109. Entries regarding service of notice or process: ................................................................ 1280

110. Default of appearance of respondent and consequences: ................................................. 1280

111. Filing of objections by respondent, form and consequences: ........................................... 1280

112. Fees: .................................................................................................................................. 1281

113. Award of costs in the proceedings: ................................................................................... 1281

114. Inspection of the records: ................................................................................................. 1281

115. Grant of inspection: .......................................................................................................... 1281

116. Application for grant of inspection: .................................................................................. 1282

117. Mode of inspection: ........................................................................................................... 1282

118. Maintenance of register of inspection: ............................................................................. 1282

119. Appearance of authorised representative: ........................................................................ 1282

120. Consent for engaging another legal practitioner: ............................................................ 1282

121. Restrictions on appearance: ............................................................................................. 1283

122. Restriction on party’s right to be heard:........................................................................... 1283

123. Empanelment of special authorised representatives by the Tribunal: .............................. 1283

124. Professional dress for the authorised representatives: ..................................................... 1283

125. Title of affidavits: .............................................................................................................. 1283

126. Form and contents of the affidavit: ................................................................................... 1283

127. Persons authorised to attest: ............................................................................................. 1283





128. Affidavits of illiterate, visually challenged persons: ......................................................... 1283

129. Identification of deponent: ................................................................................................ 1284

130. Annexures to the affidavit: ................................................................................................ 1284

131. Application for production of documents, form of summons: ........................................... 1284

132. Suo motu summoning of documents: ................................................................................. 1284

133. Marking of documents: ..................................................................................................... 1284

134. Return and transmission of documents: ............................................................................ 1285

135. Procedure for examination of witnesses, issue of Commissions:...................................... 1285

136. Examination in camera: .................................................................................................... 1285

137. Form of oath or affirmation to witness: ............................................................................ 1285

138. Form of oath or affirmation to interpreter: ...................................................................... 1285

139. Officer to administer oath: ................................................................................................ 1285

140. Form recording of deposition: .......................................................................................... 1285

141. Numbering of witnesses: ................................................................................................... 1285

142. Grant of discharge certificate: .......................................................................................... 1286

143. Witness allowance payable: .............................................................................................. 1286

144. Records to be furnished to the Commissioner: ................................................................. 1286

145. Taking of specimen handwriting, signature etc.: .............................................................. 1286

146. Disposal of Cases: ............................................................................................................ 1286

147. Operative portion of the order: ......................................................................................... 1286

148. Corrections: ...................................................................................................................... 1287

149. Power to impose Costs:..................................................................................................... 1287

150. Pronouncement of Order: ................................................................................................. 1287

151. Pronouncement of order by any one member of the Bench: ............................................. 1287

152. Authorising any member to pronounce order: .................................................................. 1287

153. Enlargement of time: ......................................................................................................... 1287

154. Rectification of Order: ...................................................................................................... 1288

155. General power to amend: ................................................................................................. 1288

156. Making of entries by Court Master: .................................................................................. 1288

157. Transmission of order by the Court Master: ..................................................................... 1288

158. Format of order: ............................................................................................................... 1288

159. Indexing of case files after disposal: ................................................................................. 1288

160. Transmission of files or records or orders: ...................................................................... 1289

161. Filing of Order of the Tribunal with the Registrar of Companies: ................................... 1289

162. Copies of orders in library: .............................................................................................. 1289

163. Register of Appeals, Petitions, etc.: .................................................................................. 1289

164. Placing of National Company Law Appellate Tribunal orders before Tribunal: ............. 1289





165. Registrar to ensure compliance of National Company Law Appellate Tribunal orders: . 1289

The Companies (Mediation and Conciliation) Rules, 2016 .................................................... 1292


2. Definitions: ........................................................................................................................... 1292

3. Panel of mediators or conciliators: ...................................................................................... 1292

4. Qualifications for empanelment: .......................................................................................... 1293

5. Disqualifications for empanelment: ...................................................................................... 1293

6. Application for appointment of Mediator or Conciliator and his appointment: ................... 1293

7. Deletion from the Panel: ....................................................................................................... 1294

8. Withdrawing name from Panel: ............................................................................................ 1294

9. Duty of mediator or conciliator to disclose certain facts: .................................................... 1294

10. Withdrawal of appointment: ............................................................................................... 1294

11. Procedure for disposal of matters: ..................................................................................... 1295

12. Mediator or Conciliator not bound by the Indian Evidence Act, 1872 or the Code of Civil

Procedure, 1908: ...................................................................................................................... 1295

13. Representation of parties: ................................................................................................... 1295

14. Consequences of non-attendance of parties at sessions or meetings on due dates: ........... 1296

15. Administrative assistance: .................................................................................................. 1296

16. Offer of settlement by parties: ............................................................................................. 1296

17. Role of Mediator or Conciliator: ........................................................................................ 1296

18. Parties alone responsible for taking decision: .................................................................... 1296

19. Time limit for completion of mediation or conciliation: ..................................................... 1296

20. Parties to act in good faith: ................................................................................................ 1297

21. Confidentiality, disclosure and inadmissibility of information:.......................................... 1297

22. Privacy: ............................................................................................................................... 1297

23. Protection of action taken in good faith: ............................................................................ 1297

24. Communication between mediator or conciliator and the Central Government or the

Tribunal or the Appellate Tribunal: .......................................................................................... 1298

25. Settlement agreement: ......................................................................................................... 1298

26. Fixing date for recording settlement and passing order: ................................................... 1298

27. Expenses of the mediation and conciliation: ...................................................................... 1299

28. Ethics to be followed by Mediator or Conciliator: ............................................................. 1299

29. Resort to arbitral or judicial proceedings: ......................................................................... 1300

30. Matters not to be referred to the mediation or conciliation: .............................................. 1300

The Companies (Adjudication of Penalties) Rules, 2014 ....................................................... 1301


2. Definitions: ........................................................................................................................... 1301

3. Adjudication of penalties: ..................................................................................................... 1301





4. Appeal against the order of adjudicating officer: ................................................................. 1302

5. Registration of appeal:.......................................................................................................... 1303

6. Disposal of appeal by Regional Director: ............................................................................ 1303

The Companies (Miscellaneous) Rules, 2014 ....................................................................... 1305


2. Definitions: ........................................................................................................................... 1305

3. Application for obtaining status of dormant company: ........................................................ 1305

4. Certificate of status of dormant company: ............................................................................ 1306

5. Register of dormant companies: ........................................................................................... 1306

6. Minimum number of directors for dormant company: .......................................................... 1306

7. Return of dormant companies: .............................................................................................. 1306

8. Application for seeking status of an active company: ........................................................... 1306

9. Fees for application to Central Government: ....................................................................... 1307

10. Association or partnership of persons exceeding certain number: ..................................... 1307

11. Applications or forms pending before Central Government, Regional Director or Registrar of

Companies: ............................................................................................................................... 1307

Annexure– 1 Commencement Notifications of the Companies Act 2013 ......... 1308

List of Notified Sections of Companies Act, 2013 till date ..................................................... 1309

98 sections notified on 12th September 2013 ............................................................................ 1309

Section 135 and Schedule VII notified on 27th February, 2014 ............................................... 1312

183 sections notified on 27th March, 2014 ............................................................................... 1313

Sub-sections (2) & (3) of section 74 notified on 6th June, 2014 ............................................... 1317

New Section 76A Inserted on 29th May 2015 ........................................................................... 1318

Sub-sections (5), (6) & (7) of section 125 notified on 13th January, 2016 ............................... 1319

5 sections notified on 18th May 2016 ....................................................................................... 1320

37 sections notified on 1st June 2016 ....................................................................................... 1321

Section 124 and sub-sections of Section 125 notified on 7th September, 2016 ........................ 1323

7 Sections Notified on 9th September 2016............................................................................... 1324

28 Sections Omitted on 15th November 2016 ........................................................................... 1325

88 Sections Notified on 7th December 2016 ............................................................................. 1326

5 Sections Notified on 26th December, 2016 ............................................................................ 1327

Section 234 notified on 13th day of April, 2017........................................................................ 1328

Section 247 notified on 18th day of October, 2017 ................................................................... 1328

Section 132 notified on 21st March 2018 ................................................................................. 1328

Commencement Notification of Companies (Amendment) Act, 2015 ................................... 1329

Commencement Notification of Companies (Amendment) Act, 2017 ................................... 1330

Annexure– 2 List of Exemptions Notifications ....................................................... 1333





Exemptions to Government Companies .............................................................................. 1334

Exemptions to Private Companies ....................................................................................... 1339

Exemptions to Nidhis ......................................................................................................... 1343

Exemptions to Section 8 (Non-profit) Companies ................................................................ 1346

Exemption to Specified IFSC Public Company ...................................................................... 1349

Exemption to Specified IFSC Private Company ..................................................................... 1356

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

.............................................................................................................................................. 1362

List of Laws mentioned in the Companies Act, 2013 for Compliance .................................... 1363

Annexure– 4 Statutory Registers to be Maintained under the Companies Act

2013 ..................................................................................................................................... 1365

List of Statutory Registers to be maintained under the Companies Act 2013 ........................ 1366

Annexure– 5 e-Forms prescribed under the Companies Act, 2013 .................... 1368

TITLE OF FORMS ................................................................................................................. 1369

Mapping of e-Forms prescribed under the Companies Act, 2013 with e-Forms prescribed under

Companies Act, 1956 .......................................................................................................... 1370

Annexure– 6 Matters Requiring Sanction by Special Resolution ...................... 1381

Matters Requiring Sanction by Special Resolution ............................................................... 1382

Annexure- 7 Matters Requiring Sanction by Ordinary Resolution ................... 1384

Matters Requiring Sanction by Ordinary Resolution ............................................................ 1385

Annexure- 8 Matters requiring Approval through Postal Ballot ....................... 1387

Matters requiring Approval through Postal Ballot ............................................................... 1388

Annexure- 9 The Companies (Auditor's Report) Order, 2016 ............................. 1389

The Companies (Auditor's Report) Order, 2016 ................................................................... 1390

Annexure- 10 Central Registration Centre ............................................................. 1394

Central Registration Centre (CRC) ....................................................................................... 1395

Annexure- 11 Jurisdictions of Regional Directors ................................................. 1396

Jurisdictions of Regional Directors ...................................................................................... 1397

Annexure- 12 National Company Law Tribunal ................................................... 1398

National Company Law Tribunal (NCLT) .............................................................................. 1399

Annexure- 13 Specimen Format of Compliance Certificate ................................ 1401

Specimen Format of Compliance Certificate ........................................................................ 1402

Annexure- 14 Condonation of Delay Scheme 2018 ................................................ 1403

Condonation of Delay Scheme 2018 [CODS-2018]................................................................ 1404

1. Validity Period: ..................................................................................................................... 1404





2. Definitions: ........................................................................................................................... 1404

3. Applicability: ......................................................................................................................... 1404

4. Procedure to be followed for the purposes of the scheme: ................................................... 1404

5. Scheme not to apply for certain documents: ......................................................................... 1405

6. Withdraw Prosecution: ......................................................................................................... 1405

7. Continue Default: .................................................................................................................. 1405

8. e-Form Availability: .............................................................................................................. 1405

Feedback ........................................................................................................................... 1406



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