Corporate Updates 28 July 2014


1. MCA notifies the class of companies for the purposes of the second proviso to sub-section (1) of section 203 of the Companies Act, 2013, that all public companies having Paid-up Share Capital of Rs. 100 Crores or more and Annual Turnover of Rs. 1,000 Crores or more which are engaged in multiple businesses and have appointed Chief Executive Officer for each such business shall be the class of companies for that purposes. For the purposes of this notification, the paid-up share capital and the annual turnover shall be decided on the basis of the latest audited balance sheet.

2. MCA notifies the Companies (Management And Administration) Second Amendment Rules, 2014 and shall come into force on the date of their publication in the Official Gazette. Following changes have been made in the said rules :

(i)  in Rule 9, after sub-rule (3), the following proviso shall be inserted, namely:- “Provided that nothing contained in this rule shall apply in relation to a trust which is created, to set up a Mutual Fund or Venture Capital Fund or such other fund as may be approved by the Securities and Exchange Board of India”.

(ii)  in Rule 13,- a). the words “either value or volume of the share” shall be omitted; and b). the Explanation shall be omitted.

(iii)  in Rule 23, in sub-rule (1), for the words “not less than five lakh rupees”, the words “not more than five lakh rupees” shall be substituted;

(iv) in Rule 27, in sub-rule (1) and in the Explanation, for the word “shall”, the word “may” shall be substituted. MCA gives discretion to Cos to maintain records in electronic form.

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