Big Relief For Private Companies!
Published on Tue, Jun 24,2014 | 19:22, Updated at Tue, Jun 24 at 19:35Source : Moneycontrol.com
MCA has today uploaded a draft notification on its website consisting of exemptions, exceptions, modifications and adaptations for private limited companies from various provisions of Companies Act, 2013. Some of the proposed changes are mentioned here below:
- Section 43 (Kinds of share capital) & Section 47 (Voting Rights) not to apply to private companies
- Section 62 (1) (a) & Section 62 (2) (Further issue of share capital) to be modified for private companies
- Section 62 (1) (b) to require 'ordinary resolution' for private companies
- Section 73 (2) conditions (relating to acceptance of Deposits) not be levied on private companies with 50 or less members
- Sec 101-07 & 109 (relating to management & administration) shall apply to private companies unless articles provide otherwise
- Section 141 (3)(g) shall not apply in w.r.t appointment of auditors by private companies.(Limit of 20 companies doesn't include private companies)
- Section 160 (directorships) & 162 (individual vote on appointment of directors) shall not apply to private companies
- Section 180 (Restrictions on powers of Board) shall not apply to private companies with 50 or less members
- Section 185 (Loans to Directors, etc) not apply to certain category of private companies
- Section 188 (Related Party Transactions) not apply to private companies
- Section 196 (4) & (5) (appointment of MD, WTD) shall not apply to private companies
- Section 203 (3) (appointment of KMP) shall not apply to private companies
MCA has invited comments on Draft Notification up to July 1st, 2014.