Taxmann's Corporate Laws | Set of 2 Volumes

© Taxmann Price : ` 1995 (For a set of Two Volumes) Law stated in this book is updated upto 10th December, 2021 Published by : Taxmann Publications (P.) Ltd. Sales & Marketing : 59/32, New Rohtak Road, New Delhi-110 005 India Phone : +91-11-45562222 Website : www.taxmann.com E-mail : sales@taxmann.com Regd. Office : 21/35, West Punjabi Bagh, New Delhi-110 026 India Printed at : Tan Prints (India) Pvt. Ltd. 44 Km. Mile Stone, National Highway, Rohtak Road Village Rohad, Distt. Jhajjar (Haryana) India E-mail : sales@tanprints.com Disclaimer Every effort has been made to avoid errors or omissions in this publication. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. It is notified that neither the publisher nor the author or seller will be responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom. It is suggested that to avoid any doubt the reader should cross-check all the facts, law and contents of the publication with original Government publication or notifications.

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All disputes are subject to Delhi jurisdiction only.

CONTENTS PAGE u u u u u u u u u

u

u

List of Rules/Regulations Alphabetical list of Rules/Regulations Amendments made by Companies (Amendment) Act, 2020 at a Glance Guide to Companies (Amendment) Act, 2020

I-11 I-15 I-19 I-23

Exemptions to Private Companies Exemptions to Section 8 Companies Exemptions to Nidhis

I-51 I-57 I-60

Exemptions to Government Companies Exemptions to private company which is licensed to operate

by RBI or SEBI or IRDA from the International Financial Services Centre located in an approved multi services SEZ set-up under the SEZ Act Exemptions to an unlisted public company which is licensed to operate by RBI or SEBI or IRDA from the International Financial Services Centre located in an approved multi services SEZ set-up under SEZ Act

I-63

List of Circulars & Notifications

I-84

I-69

I-76

1 COMPANIES ACT, 2013 WITH RULES u u

u u u

Arrangement of Sections Annotated text of the Companies Act, 2013 as amended

by Companies (Amendment) Act, 2020 and Tribunals Reforms Act, 2021 with Rules framed thereunder Appendix I : Provisions of other Acts referred to in Companies Act, 2013 Appendix II : Words & Phrases judicially noticed Appendix III : Companies (Amendment) Act, 2020

I-5

iii-xxvi

1.1-1.624 1.625-1.686 1.687-1.736 1.737-1.783

CONTENTS

I-6 PAGE

2 RULES FRAMED UNDER COMPANIES ACT, 2013 u

Key to prescribed form Companies (Specification of Definitions Details) Rules, 2014

2.i 2.3

u

Companies (Incorporation) Rules, 2014

2.6

u

Companies (Prospectus and Allotment of Securities) Rules, 2014

2.47

u

Companies (Issue of Global Depository Receipts) Rules, 2014

2.61

u

Companies (Share Capital and Debentures) Rules, 2014

2.63

u

Companies (Acceptance of Deposits) Rules, 2014

2.91

u

Companies (Registration of Charges) Rules, 2014

2.106

u

Companies (Management and Administration) Rules, 2014

2.110

u

Companies (Declaration and Payment of Dividend) Rules, 2014

2.131

u

Companies (Accounts) Rules, 2014

2.132

u

Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015

2.139

u

Companies (Audit and Auditors) Rules, 2014

2.141

u

Companies (Corporate Social Responsibility Policy) Rules, 2014

2.148

u

Companies (Appointment and Qualification of Directors) Rules, 2014

2.162

u

Companies (Meetings of Board and its Powers) Rules, 2014

2.176

u

Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

2.187

u

Companies (Inspection, Investigation and Inquiry) Rules, 2014

2.193

u

Companies (Authorised to Register) Rules, 2014

2.194

u

Companies (Registration of Foreign Companies) Rules, 2014

2.202

u

Companies (Registration Offices and Fees) Rules, 2014

2.214

u

Nidhi Rules, 2014

2.232

u

National Company Law Tribunal Rules, 2016

2.244

u

National Company Law Appellate Tribunal Rules, 2016

2.290

u

National Company Law Tribunal (Salary, Allowances and Other Terms and Conditions of Service of President and Other Members) Rules, 2015

2.308

u

I-7

CONTENTS PAGE

National Company Law Appellate Tribunal (Salaries and Allowances and Other Terms and Conditions of Service of the Chairperson and Other Members) Rules, 2015

2.311

u

Companies (Adjudication of Penalties) Rules, 2014

2.314

u

Companies (Miscellaneous) Rules, 2014

2.318

u

Companies (Cost Records and Audit) Rules, 2014

2.321

u

Depository Receipts Scheme, 2014

2.332

u

Companies (Indian Accounting Standards) Rules, 2015

2.336

u

Companies (Accounting Standards) Rules, 2021

2.342

u

Investor Education and Protection Fund Authority (Appointment of Chairperson and Members, holding of Meetings and provision for Offices and Officers) Rules, 2016 Companies (Compromises, Arrangements and Amalgamations) Rules, 2016

2.345

u

Companies (Mediation and Conciliation) Rules, 2016

2.363

u

Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016

2.371

u

Companies (Transfer of Pending Proceedings) Rules, 2016

2.375

u

Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016

2.377

u

National Company Law Tribunal (Procedure for Reduction of Share Capital of Company) Rules, 2016

2.401

u

Tribunals Reforms Act, 2021

2.402

u

Conditions of Service of Chairperson and Members of Tribunals, Appellate Tribunals and other Authorities

2.418

u

Tribunal (Conditions of Service) Rules, 2021

2.421

u

Companies (Arrests in Connection with Investigation

by Serious Fraud Investigation Office) Rules, 2017 Companies (Registered Valuers and Valuation) Rules, 2017 Companies (Restriction on Number of Layers) Rules, 2017 Condonation of Delay Scheme, 2018 National Financial Reporting Authority (Manner of Appointment and other Terms and Conditions of Service of Chairperson and Members) Rules, 2018 Companies (Significant Beneficial Owners) Rules, 2018 Investor Education and Protection Fund Authority (Form of Annual Statement of Accounts) Rules, 2018 Investor Education and Protection Fund Authority (Form and Time of Preparation of Annual Report) Rules, 2018

u

u

u u u u

u u u

2.350

2.431 2.437 2.458 2.459

2.461 2.466 2.472 2.473

CONTENTS

I-8 PAGE

u

u u u

u u u u

u

Specified Companies (Furnishing of Information about Payment to Micro and Small Enterprise Suppliers) Order, 2019 National Financial Reporting Authority Rules, 2018 National Financial Reporting Authority (Meeting for Transaction of Business) Rules, 2019 National Financial Reporting Authority (Recruitment, Salary, Allowances and Other Terms and Conditions of Service of Secretary, Officers and Other Employees of Authority) Rules, 2019 Companies (Creation and Maintenance of Data Bank of Independent Directors) Rules, 2019 Companies (Winding up) Rules, 2020 Companies (Auditor s Report) Order, 2020 National Company Law Tribunal and National Company Law Appellate Tribunal (Procedure for Investigation of Misbehaviour or Incapacity of Chairperson, President and Other Members) Rules, 2020 Producer Companies Rules, 2021

2.474 2.475 2.482 2.484 2.485 2.489 2.523

2.529 2.531

3 CIRCULARS & NOTIFICATIONS u

Circulars & Notifications issued under the Companies Act, 2013

3.3

4 SECURITIES CONTRACTS (REGULATION) ACT, 1956 u

Arrangement of Sections

4.3

u

Text of the Securities Contracts (Regulation) Act, 1956 as amended

by Finance Act, 2021

4.7

5 LIMITED LIABILITY PARTNERSHIP ACT, 2008 u

Arrangement of Sections Text of the Limited Liability Partnership Act, 2008 as amended by the Limited Liability Partnership (Amendment) Act, 2021

u

Limited Liability Partnership (Amendment) Act, 2021

u

5.3 5.7 5.61

6 EMBLEMS AND NAMES (PREVENTION OF IMPROPER USE) ACT, 1950 u

Arrangement of Sections

6.3

I-9

CONTENTS PAGE

u

Text of the Emblems and Names (Prevention of Improper Use) Act, 1950

6.5

7 FOREIGN EXCHANGE MANAGEMENT ACT, 1999 u

Arrangement of Sections

7.3*

u

Text of the Foreign Exchange Management Act, 1999 as amended upto date

7.7*

8 FOREIGN CONTRIBUTION (REGULATION) ACT, 2010 u

Arrangement of Sections

8.3*

u

Text of the Foreign Contribution (Regulation) Act, 2010

8.7*

9 DEPOSITORIES ACT, 1996 u

Arrangement of Sections

9.3*

u

Text of the Depositories Act, 1996

9.7*

10 INSOLVENCY AND BANKRUPTCY CODE, 2016 u

Arrangement of Sections

10.3*

u

Text of Insolvency and Bankruptcy Code, 2016 as amended by Insolvency and Bankruptcy Code (Amendment) Act, 2021

10.15*

u

Appendix : Provisions of other Acts referred to in Insolvency and Bankruptcy Code

10.189*

u

Insolvency and Bankruptcy Code (Amendment) Act, 2021

10.223*

u

Insolvency and Bankruptcy Code (Second Amendment) Act, 2020

10.243*

u

Insolvency and Bankruptcy Code (Amendment) Act, 2020

10.245*

u

Insolvency and Bankruptcy Code (Amendment) Act, 2019

10.251*

u

Subject Index

10.255*

11 COMPETITION ACT, 2002 u

Arrangement of Sections

11.3*

u

Text of the Competition Act, 2002

11.9*

*See Volume 2.

CONTENTS

I-10 PAGE

12 SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) REPEAL ACT, 2003 u

Arrangement of Sections

12.3*

u

Text of the Sick Industrial Companies (Special Provisions) Repeal Act, 2003

12.5*

13 SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 u u

Arrangement of Sections Text of the Securities and Exchange Board of India Act, 1992 as amended by the Finance Act, 2021 and Tribunals Reforms Act, 2021

13.3* 13.9*

14 SEBI (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2018 u

Arrangement of Regulations

14.i*

u

Text of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 as amended by SEBI (ICDR) (Fourth Amdt.) Regulations, 2021 14.3*

15 LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS u

u

SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) as amended by SEBI (LODR) (Sixth Amdt.)

Regulations, 2021 Clarifications

15.3* 15.127*

16 BANNING OF UNREGULATED DEPOSIT SCHEMES ACT, 2019 u

Arrangement of Sections

16.3*

u

Text of the Banning of Unregulated Deposit Schemes Act, 2019

16.7*

17 RIGHT TO INFORMATION ACT, 2005 u

Arrangement of Sections

17.3*

u

Text of the Right to Information Act, 2005

17.5*

*See Volume 2.

CONTENTS PAGE u u u u u u u u u

u

u

List of Rules/Regulations Alphabetical list of Rules/Regulations Amendments made by Companies (Amendment) Act, 2020 at a Glance Guide to Companies (Amendment) Act, 2020

I-11* I-15* I-19* I-23*

Exemptions to Private Companies Exemptions to Section 8 Companies Exemptions to Nidhis

I-51* I-57* I-60*

Exemptions to Government Companies Exemptions to private company which is licensed to operate

by RBI or SEBI or IRDA from the International Financial Services Centre located in an approved multi services SEZ set-up under the SEZ Act Exemptions to an unlisted public company which is licensed to operate by RBI or SEBI or IRDA from the International Financial Services Centre located in an approved multi services SEZ set-up under SEZ Act

I-63*

List of Circulars & Notifications

I-84*

I-69*

I-76*

1 COMPANIES ACT, 2013 WITH RULES u u

u u u

Arrangement of Sections Annotated text of the Companies Act, 2013 as amended

by Companies (Amendment) Act, 2020 and Tribunals Reforms Act, 2021 with Rules framed thereunder Appendix I : Provisions of other Acts referred to in Companies Act, 2013 Appendix II : Words & Phrases judicially noticed Appendix III : Companies (Amendment) Act, 2020

*See Volume 1.

I-5

iii-xxvi*

1.1-1.624* 1.625-1.686* 1.687-1.736* 1.737-1.783*

CONTENTS

I-6 PAGE

2 RULES FRAMED UNDER COMPANIES ACT, 2013 u

Key to prescribed form Companies (Specification of Definitions Details) Rules, 2014

2.i* 2.3*

u

Companies (Incorporation) Rules, 2014

2.6*

u

Companies (Prospectus and Allotment of Securities) Rules, 2014

2.47*

u

Companies (Issue of Global Depository Receipts) Rules, 2014

2.61*

u

Companies (Share Capital and Debentures) Rules, 2014

2.63*

u

Companies (Acceptance of Deposits) Rules, 2014

2.91*

u

Companies (Registration of Charges) Rules, 2014

2.106*

u

Companies (Management and Administration) Rules, 2014

2.110*

u

Companies (Declaration and Payment of Dividend) Rules, 2014

2.131*

u

Companies (Accounts) Rules, 2014

2.132*

u

Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015

2.139*

u

Companies (Audit and Auditors) Rules, 2014

2.141*

u

Companies (Corporate Social Responsibility Policy) Rules, 2014

2.148*

u

Companies (Appointment and Qualification of Directors) Rules, 2014

2.162*

u

Companies (Meetings of Board and its Powers) Rules, 2014

2.176*

u

Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

2.187*

u

Companies (Inspection, Investigation and Inquiry) Rules, 2014

2.193*

u

Companies (Authorised to Register) Rules, 2014

2.194*

u

Companies (Registration of Foreign Companies) Rules, 2014

2.202*

u

Companies (Registration Offices and Fees) Rules, 2014

2.214*

u

Nidhi Rules, 2014

2.232*

u

National Company Law Tribunal Rules, 2016

2.244*

u

National Company Law Appellate Tribunal Rules, 2016

2.290*

u

National Company Law Tribunal (Salary, Allowances and Other Terms and Conditions of Service of President and Other Members) Rules, 2015

2.308*

u

*See Volume 1.

I-7

CONTENTS PAGE

National Company Law Appellate Tribunal (Salaries and Allowances and Other Terms and Conditions of Service of the Chairperson and Other Members) Rules, 2015

2.311*

u

Companies (Adjudication of Penalties) Rules, 2014

2.314*

u

Companies (Miscellaneous) Rules, 2014

2.318*

u

Companies (Cost Records and Audit) Rules, 2014

2.321*

u

Depository Receipts Scheme, 2014

2.332*

u

Companies (Indian Accounting Standards) Rules, 2015

2.336*

u

Companies (Accounting Standards) Rules, 2021

2.342*

u

Investor Education and Protection Fund Authority (Appointment of Chairperson and Members, holding of Meetings and provision for Offices and Officers) Rules, 2016 Companies (Compromises, Arrangements and Amalgamations) Rules, 2016

2.345*

u

Companies (Mediation and Conciliation) Rules, 2016

2.363*

u

Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016

2.371*

u

Companies (Transfer of Pending Proceedings) Rules, 2016

2.375*

u

Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016

2.377*

u

National Company Law Tribunal (Procedure for Reduction of Share Capital of Company) Rules, 2016

2.401*

u

Tribunals Reforms Act, 2021

2.402*

u

Conditions of Service of Chairperson and Members of Tribunals, Appellate Tribunals and other Authorities

2.418*

u

Tribunal (Conditions of Service) Rules, 2021

2.421*

u

Companies (Arrests in Connection with Investigation

by Serious Fraud Investigation Office) Rules, 2017 Companies (Registered Valuers and Valuation) Rules, 2017 Companies (Restriction on Number of Layers) Rules, 2017 Condonation of Delay Scheme, 2018 National Financial Reporting Authority (Manner of Appointment and other Terms and Conditions of Service of Chairperson and Members) Rules, 2018 Companies (Significant Beneficial Owners) Rules, 2018 Investor Education and Protection Fund Authority (Form of Annual Statement of Accounts) Rules, 2018

u

u

u u u u

u u

*See Volume 1.

2.350*

2.431* 2.437* 2.458* 2.459*

2.461* 2.466* 2.472*

CONTENTS

I-8 PAGE

u u

u u u

u u u u

u

Investor Education and Protection Fund Authority (Form and Time of Preparation of Annual Report) Rules, 2018 Specified Companies (Furnishing of Information about Payment to Micro and Small Enterprise Suppliers) Order, 2019 National Financial Reporting Authority Rules, 2018 National Financial Reporting Authority (Meeting for Transaction of Business) Rules, 2019 National Financial Reporting Authority (Recruitment, Salary, Allowances and Other Terms and Conditions of Service of Secretary, Officers and Other Employees of Authority) Rules, 2019 Companies (Creation and Maintenance of Data Bank of Independent Directors) Rules, 2019 Companies (Winding up) Rules, 2020 Companies (Auditor s Report) Order, 2020 National Company Law Tribunal and National Company Law Appellate Tribunal (Procedure for Investigation of Misbehaviour or Incapacity of Chairperson, President and Other Members) Rules, 2020 Producer Companies Rules, 2021

2.473*

2.474* 2.475* 2.482* 2.484* 2.485* 2.489* 2.523*

2.529* 2.531*

3 CIRCULARS & NOTIFICATIONS u

Circulars & Notifications issued under the Companies Act, 2013

3.3*

4 SECURITIES CONTRACTS (REGULATION) ACT, 1956 u

Arrangement of Sections

4.3*

u

Text of the Securities Contracts (Regulation) Act, 1956 as amended

by Finance Act, 2021

4.7*

5 LIMITED LIABILITY PARTNERSHIP ACT, 2008 u

Arrangement of Sections

5.3*

u

Text of the Limited Liability Partnership Act, 2008 as amended by the Limited Liability Partnership (Amendment) Act, 2021

5.7*

u

Limited Liability Partnership (Amendment) Act, 2021

*See Volume 1.

5.61*

I-9

CONTENTS PAGE

6 EMBLEMS AND NAMES (PREVENTION OF IMPROPER USE) ACT, 1950 u u

Arrangement of Sections Text of the Emblems and Names (Prevention of Improper Use) Act, 1950

6.3* 6.5*

7 FOREIGN EXCHANGE MANAGEMENT ACT, 1999 u

Arrangement of Sections

7.3

u

Text of the Foreign Exchange Management Act, 1999 as amended upto date

7.7

8 FOREIGN CONTRIBUTION (REGULATION) ACT, 2010 u

Arrangement of Sections

8.3

u

Text of the Foreign Contribution (Regulation) Act, 2010

8.7

9 DEPOSITORIES ACT, 1996 u

Arrangement of Sections

9.3

u

Text of the Depositories Act, 1996

9.7

10 INSOLVENCY AND BANKRUPTCY CODE, 2016

Arrangement of Sections Text of Insolvency and Bankruptcy Code, 2016 as amended by Insolvency and Bankruptcy Code (Amendment) Act, 2021 Appendix : Provisions of other Acts referred to in Insolvency and Bankruptcy Code Insolvency and Bankruptcy Code (Amendment) Act, 2021

10.189 10.223

u

Insolvency and Bankruptcy Code (Second Amendment) Act, 2020 Insolvency and Bankruptcy Code (Amendment) Act, 2020 Insolvency and Bankruptcy Code (Amendment) Act, 2019

10.243 10.245 10.251

u

Subject Index

10.255

u u u u u u

10.3 10.15

11 COMPETITION ACT, 2002 u

Arrangement of Sections

11.3

u

Text of the Competition Act, 2002

11.9

*See Volume 1.

CONTENTS

I-10 PAGE

12 SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) REPEAL ACT, 2003 u

Arrangement of Sections

12.3

u

Text of the Sick Industrial Companies (Special Provisions) Repeal Act, 2003

12.5

13 SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 u u

Arrangement of Sections Text of the Securities and Exchange Board of India Act, 1992 as amended by the Finance Act, 2021 and Tribunals Reforms Act, 2021

13.3 13.9

14 SEBI (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2018 u

Arrangement of Regulations

14.i

u

Text of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 as amended by SEBI (ICDR) (Fourth Amdt.) Regulations, 2021 14.3

15 LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS u

u

SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) as amended by SEBI (LODR) (Sixth Amdt.)

Regulations, 2021 Clarifications

15.3 15.127

16 BANNING OF UNREGULATED DEPOSIT SCHEMES ACT, 2019 u

Arrangement of Sections

16.3

u

Text of the Banning of Unregulated Deposit Schemes Act, 2019

16.7

17 RIGHT TO INFORMATION ACT, 2005 u

Arrangement of Sections

17.3

u

Text of the Right to Information Act, 2005

17.5

1.243

CH. XIII - APPOINTMENT AND REMUNERATION

S. 196

Prohibition on insider trading of securities.

195.

40

[***] CHAPTER XIII APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL

41

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

42

196. (1) No company shall appoint or employ at the same time a managing director and a manager.

43 (2) No company shall appoint or re-appoint any person as its managing director, whole-time director or manager for a term exceeding five years at a time:

Provided that no re-appointment shall be made earlier than one year before the expiry of his term.

(3) No company shall appoint or continue the employment of any person as managing director, whole-time director or manager who —

40. Omitted by the Companies (Amendment) Act, 2017, w.e.f. 9-2-2018. Prior to its omission, section 195 read as under : ‘195. Prohibition on insider trading of securities.—(1) No person including any director or key managerial personnel of a company shall enter into insider trading: Provided that nothing contained in this sub-section shall apply to any communication required in the ordinary course of business or profession or employment or under any law.

Explanation.—For the purposes of this section,— (a) “insider trading” means— (i) an act of subscribing, buying, selling, dealing or agreeing to subscribe, buy, sell or deal in any securities by any director or key managerial personnel or any other officer of a company either as principal or agent if such director or key managerial personnel or any other officer of the company is reasonably expected to have access to any non-public price sensitive information in respect of securities of company; or (ii) an act of counselling about procuring or communicating directly or indirectly any non-public price-sensitive information to any person; (b) “price-sensitive information” means any information which relates, directly or indirectly, to a company and which if published is likely to materially affect the price of securities of the company.

(2) If any person contravenes the provisions of this section, he shall be punishable with imprisonment for a term which may extend to five years or with fine which shall not be less than five lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of insider trading, whichever is higher, or with both.’

Earlier section 195 was enforced with effect from 12-9-2013.

41. Corresponds to sections 197A, 267, 317, 384, 385 and 388 of the 1956 Act. 42. Enforced with effect from 1-4-2014.

43. In case of Government Companies, section 196(2), (4) and (5) shall not apply - Notification No. GSR 463(E), dated 5-6-2015.

S. 196

COMPANIES ACT, 2013

1.244

(a) is below the age of twenty-one years or has attained the age of seventy years: Provided that appointment of a person who has attained the age of seventy years may be made by passing a special resolution in which case the explanatory statement annexed to the notice for such motion shall indicate the justification for appointing such person: 44

[Provided further that where no such special resolution is passed but votes cast in favour of the motion exceed the votes, if any, cast against the motion and the Central Government is satisfied, on an application made by the Board, that such appointment is most beneficial to the company, the appointment of the person who has attained the age of seventy years may be made;] (b) is an undischarged insolvent or has at any time been adjudged as an insolvent; (c) has at any time suspended payment to his creditors or makes, or has at any time made, a composition with them; or (d) has at any time been convicted by a court of an offence and sentenced for a period of more than six months.

45

(4) Subject to the provisions of section 197 and Schedule V, a managing director, whole-time director or manager shall be appointed and the terms and conditions of such appointment and remuneration payable be approved by the Board of Directors at a meeting which shall be subject to approval by a resolution at the next general meeting of the company and by the Central Government in case such appointment is at variance to the conditions 46[specified in Part I of that Schedule]: Provided that a notice convening Board or general meeting for considering such appointment shall include the terms and conditions of such appointment, remuneration payable and such other matters including interest, of a director or directors in such appointments, if any: Provided further that a return in the prescribed form47 shall be filed within sixty days of such appointment with the Registrar.

44. Inserted by the Companies (Amendment) Act, 2017, w.e.f. 12-9-2018.

45. In case of private companies section 196(4)/(5) shall not apply - Notification No. GSR 464(E), dated 5-6-2015.

In case of Government Companies, section 196(2), (4) and (5) shall not apply - Notification No. GSR 463(E), dated 5-6-2015.

In case of an unlisted public company which is licensed to operate by RBI or SEBI or IRDA from the International Financial Services Centre located in an approved multi services SEZ set-up under the SEZ Act, sub-section (4) of section 196 shall not apply. —Notification No. GSR 8(E), dated 4-1-2017.

46. Substituted for “specified in that Schedule” by the Companies (Amendment) Act, 2017, w.e.f.

12-9-2018.

47. See rule 3 and Form No. MR 1 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014.

1.245

CH. XIII - APPOINTMENT AND REMUNERATION

S. 197

48

(5) Subject to the provisions of this Act, where an appointment of a managing director, whole-time director or manager is not approved by the company at a general meeting, any act done by him before such approval shall not be deemed to be invalid.

49

Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits.50 197.52 (1) The total managerial remuneration payable by a public company, to its directors, including managing director and whole-time director, and its manager in respect of any financial year shall not exceed eleven per cent of the net profits of that company for that financial year computed in the manner laid down in section 198 except that the remuneration of the directors shall not be deducted from the gross profits:

51

Provided that the company in general meeting may, 53[***] authorise the payment of remuneration exceeding eleven per cent of the net profits of the company, subject to the provisions of Schedule V:

48. In case of private companies section 196(4)/(5) shall not apply - Notification No. GSR 464(E), dated 5-6-2015.

In case of Government Companies, section 196(2), (4) and (5) shall not apply - Notification No. GSR 463(E), dated 5-6-2015.

In case of an unlisted public company which is licensed to operate by RBI or SEBI or IRDA from the International Financial Services Centre located in an approved multi services SEZ set-up under the SEZ Act, sub-section (4) of section 196 shall not apply. —Notification No. GSR 8(E), dated 4-1-2017.

49. Corresponds to sections 198, 201, 309, 310 and 387 of the 1956 Act. See also Circular No. 7/ 2015, dated 10-4-2015 [Schedule XIII of the 1956 Act vs. Section V of the 2013 Act].

50. Enforced with effect from 1-4-2014.

51. See also Table F of Schedule I. 52. In case of Government Companies, section 197 shall not apply - Notification No. GSR 463(E), dated 5-6-2015.

In case of Nidhis, second proviso to sub-section (1) of section 197 shall apply with the modification that the remuneration of a director who is neither managing director nor wholetime director or manager for performing special services to the Nidhis specified in the articles of association may be paid by way of monthly payment subject to the approval of the company in general meeting and also to the provisions of section 197 : Provided that no approval of the company in general meeting shall be required where,— (a) a Nidhi does not have a managing director or a whole-time director or a manager; (b) the remuneration payable during a financial year to all the directors of the Nidhi does not exceed ten per cent of the net profits of such Nidhi or fifteen lakh rupees, whichever is less; and (c) a remuneration payable under clause (b) is approved by a special resolution passed in this behalf by the Nidhi - Notification No. GSR 465(E), dated 5-6-2015.

In case of an unlisted public company which is licensed to operate by RBI or SEBI or IRDA from the International Financial Services Centre located in an approved multi services SEZ set-up under the SEZ Act, section 197 shall not apply.—Notification No. GSR 8(E), dated 4-1-2017.

53. Words “with the approval of the Central Government,” omitted by the Companies (Amendment) Act, 2017, w.e.f. 12-9-2018.

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1.246

Provided further that, except with the approval of the company in general meeting, 54[by a special resolution,]— (i) the remuneration payable to any one managing director; or whole-time director or manager shall not exceed five per cent of the net profits of the company and if there is more than one such director remuneration shall not exceed ten per cent of the net profits to all such directors and manager taken together; (ii) the remuneration payable to directors who are neither managing directors nor whole-time directors shall not exceed,— (A) one per cent of the net profits of the company, if there is a managing or whole-time director or manager; (B) three per cent of the net profits in any other case: 54 [Provided also that, where the company has defaulted in payment of dues to any bank or public financial institution or non-convertible debenture holders or any other secured creditor, the prior approval of the bank or public financial institution concerned or the non-convertible debenture holders or other secured creditor, as the case may be, shall be obtained by the company before obtaining the approval in the general meeting.]

(2) The percentages aforesaid shall be exclusive of any fees payable to directors under sub-section (5).

(3) Notwithstanding anything contained in sub-sections (1) and (2), but subject to the provisions of Schedule V, if, in any financial year, a company has no profits or its profits are inadequate, the company shall not pay to its directors, including any managing or whole-time director or manager, 54a[or any other non-executive director, including an independent director] by way of remuneration any sum exclusive of any fees payable to directors under sub-section (5) hereunder except in accordance with the provisions of Schedule V 55[***].

(4) The remuneration payable to the directors of a company, including any managing or whole-time director or manager, shall be determined, in accordance with and subject to the provisions of this section, either by the articles of the company, or by a resolution or, if the articles so require, by a special resolution, passed by the company in general meeting and the remuneration payable to a director determined aforesaid shall be inclusive of the remuneration payable to him for the services56 rendered by him in any other capacity: Provided that any remuneration for services rendered by any such director in other capacity shall not be so included if— (a) the services rendered are of a professional nature; and (b) in the opinion of the Nomination and Remuneration Committee, if the company is covered under sub-section (1) of section 178, or the Board 54. Inserted by the Companies (Amendment) Act, 2017, w.e.f. 12-9-2018.

54a. Inserted by the Companies (Amendment) Act, 2020, w.e.f. 18-3-2021.

55. Words “and if it is not able to comply with such provisions, with the previous approval of the Central Government” omitted by the Companies (Amendment) Act, 2017, w.e.f. 12-9-2018.

56. For meaning of the term “services”, see Taxmann’s Company Law Manual.

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of Directors in other cases, the director possesses the requisite qualification for the practice of the profession.

(5) A director may receive remuneration by way of fee for attending meetings of the Board or Committee thereof or for any other purpose whatsoever as may be decided by the Board: Provided that the amount of such fees shall not exceed the amount as may be prescribed57: Provided further that different fees for different classes of companies and fees in respect of independent director may be such as may be prescribed.

(6) A director or manager may be paid remuneration either by way of a monthly payment or at a specified percentage of the net profits of the company or partly by one way and partly by the other.

(7) 58[***] (8) The net profits for the purposes of this section shall be computed in the manner referred to in section 198.

59

[(9) If any director draws or receives, directly or indirectly, by way of remuneration any such sums in excess of the limit prescribed by this section or without approval required under this section, he shall refund such sums to the company, within two years or such lesser period as may be allowed by the company, and until such sum is refunded, hold it in trust for the company.]

(10) The company shall not waive the recovery of any sum refundable to it under sub-section (9) unless 60[approved by the company by special resolution within two years from the date the sum becomes refundable]: 61 [Provided that where the company has defaulted in payment of dues to any bank or public financial institution or non-convertible debenture holders or any other secured creditor, the prior approval of the bank or public financial institution concerned or the non-convertible debenture holders or other secured creditor, as the case may be, shall be obtained by the company before obtaining approval of such waiver.]

57. See rule 4 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014.

58. Omitted by the Companies (Amendment) Act, 2019, w.r.e.f. 2-11-2018. Prior to its omission, sub-section (7) read as under : “(7) Notwithstanding anything contained in any other provision of this Act but subject to the provisions of this section, an independent director shall not be entitled to any stock option and may receive remuneration by way of fees provided under sub-section (5), reimbursement of expenses for participation in the Board and other meetings and profit related commission as may be approved by the members.”

59. Substituted by the Companies (Amendment) Act, 2017, w.e.f. 12-9-2018. Prior to its substitution, sub-section (9) read as under : “(9) If any director draws or receives, directly or indirectly, by way of remuneration any such sums in excess of the limit prescribed by this section or without the prior sanction of the Central Government, where it is required, he shall refund such sums to the company and until such sum is refunded, hold it in trust for the company.”

60. Substituted for “permitted by the Central Government”, ibid.

61. Inserted, ibid.

S. 197

COMPANIES ACT, 2013

1.248

(11) In cases where Schedule V is applicable on grounds of no profits or inadequate profits, any provision relating to the remuneration of any director which purports to increase or has the effect of increasing the amount thereof, whether the provision be contained in the company’s memorandum or articles, or in an agreement entered into by it, or in any resolution passed by the company in general meeting or its Board, shall not have any effect unless such increase is in accordance with the conditions specified in that Schedule 62[***].

(12) Every listed company shall disclose in the Board’s report, the ratio of the remuneration of each director to the median employee’s remuneration and such other details as may be prescribed63.

(13) Where any insurance is taken by a company on behalf of its managing director, whole-time director, manager, Chief Executive Officer, Chief Financial Officer or Company Secretary for indemnifying any of them against any liability in respect of any negligence, default, misfeasance, breach of duty or breach of trust for which they may be guilty in relation to the company, the premium paid on such insurance shall not be treated as part of the remuneration payable to any such personnel: Provided that if such person is proved to be guilty, the premium paid on such insurance shall be treated as part of the remuneration.

(14) Subject to the provisions of this section, any director who is in receipt of any commission from the company and who is a managing or whole-time director of the company shall not be disqualified from receiving any remuneration or commission from any holding company or subsidiary company of such company subject to its disclosure by the company in the Board’s report. [(15) If any person makes any default in complying with the provisions of this section, he shall be liable to a penalty of one lakh rupees and where any default has been made by a company, the company shall be liable to a penalty of five lakh rupees.]

65 [(16) The auditor of the company shall, in his report under section 143, make a statement as to whether the remuneration paid by the company to its directors is in accordance with the provisions of this section, whether remuneration paid to any director is in excess of the limit laid down under this section and give such other details as may be prescribed.

64

(17) On and from the commencement of the Companies (Amendment) Act, 2017, any application made to the Central Government under the provisions 62. Words “and if such conditions are not being complied, the approval of the Central Government had been obtained” omitted by the Companies (Amendment) Act, 2017, w.e.f. 12-9-2018.

63. See rule 5 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014.

64. Substituted by the Companies (Amendment) Act, 2019, w.r.e.f. 2-11-2018. Prior to its substitution, sub-section (15) read as under : “(15) If any person contravenes the provisions of this section, he shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.”

65. Inserted by the Companies (Amendment) Act, 2017, w.e.f. 12-9-2018.

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S. 198

of this section [as it stood before such commencement], which is pending with that Government shall abate, and the company shall, within one year of such commencement, obtain the approval in accordance with the provisions of this section, as so amended.]

66

Calculation of profits.

67

198. (1) In computing the net profits of a company in any financial year for the purpose of section 197,— (a) credit shall be given for the sums specified in sub-section (2), and credit shall not be given for those specified in sub-section (3); and (b)

the sums specified in sub-section (4) shall be deducted, and those specified in sub-section (5) shall not be deducted.

(2) In making the computation aforesaid, credit shall be given for the bounties and subsidies received from any Government, or any public authority constituted or authorised in this behalf, by any Government, unless and except in so far as the Central Government otherwise directs.

(3) In making the computation aforesaid, credit shall not be given for the following sums, namely:— (a) profits, by way of premium on shares or debentures of the company, which are issued or sold by the company 68[unless the company is an investment company as referred to in clause (a) of the Explanation to section 186]; (b) profits on sales by the company of forfeited shares; (c) profits of a capital nature including profits from the sale of the undertaking or any of the undertakings of the company or of any part thereof; (d) profits from the sale of any immovable property or fixed assets of a capital nature comprised in the undertaking or any of the undertakings of the company, unless the business of the company consists, whether wholly or partly, of buying and selling any such property or assets: Provided that where the amount for which any fixed asset is sold exceeds the written-down value thereof, credit shall be given for so much of the excess as is not higher than the difference between the original cost of that fixed asset and its written down value; (e) any change in carrying amount of an asset or of a liability recognised in equity reserves including surplus in profit and loss account on measurement of the asset or the liability at fair value; 68

[(f) any amount representing unrealised gains, notional gains or revaluation of assets.]

66. Corresponds to section 349 of the 1956 Act. 67. Enforced with effect from 1-4-2014.

68. Inserted by the Companies (Amendment) Act, 2017, w.e.f. 12-9-2018.

S. 198

COMPANIES ACT, 2013

1.250

(4) In making the computation aforesaid, the following sums shall be deducted, namely:— (a) all the usual working charges; (b) directors’ remuneration; (c) bonus or commission paid or payable to any member of the company’s staff, or to any engineer, technician or person employed or engaged by the company, whether on a whole-time or on a part-time basis; (d) any tax notified by the Central Government as being in the nature of a tax on excess or abnormal profits; (e) any tax on business profits imposed for special reasons or in special circumstances and notified by the Central Government in this behalf; (f) interest on debentures issued by the company; (g) interest on mortgages executed by the company and on loans and advances secured by a charge on its fixed or floating assets; (h) interest on unsecured loans and advances; (i) expenses on repairs, whether to immovable or to movable property, provided the repairs are not of a capital nature; (j) outgoings inclusive of contributions made under section 181; (k) depreciation to the extent specified in section 123; (l) the excess of expenditure over income, which had arisen in computing the net profits in accordance with this section in any year 69[***], in so far as such excess has not been deducted in any subsequent year preceding the year in respect of which the net profits have to be ascertained; (m) any compensation or damages to be paid in virtue of any legal liability including a liability arising from a breach of contract; (n) any sum paid by way of insurance against the risk of meeting any liability such as is referred to in clause (m); (o) debts considered bad and written off or adjusted during the year of account.

(5) In making the computation aforesaid, the following sums shall not be deducted, namely:— (a) income-tax and super-tax payable by the company under the Incometax Act, 1961 (43 of 1961), or any other tax on the income of the company not falling under clauses (d) and (e) of sub-section (4); (b) any compensation, damages or payments made voluntarily, that is to say, otherwise than in virtue of a liability such as is referred to in clause (m) of sub-section (4); 69. Words “which begins at or after the commencement of this Act” omitted by the Companies (Amendment) Act, 2017, w.e.f. 12-9-2018.

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(c) loss of a capital nature including loss on sale of the undertaking or any of the undertakings of the company or of any part thereof not including any excess of the written-down value of any asset which is sold, discarded, demolished or destroyed over its sale proceeds or its scrap value; (d) any change in carrying amount of an asset or of a liability recognised in equity reserves including surplus in profit and loss account on measurement of the asset or the liability at fair value.

Recovery of remuneration in certain cases.

199. Without prejudice to any liability incurred under the provisions of this Act or any other law for the time being in force, where a company is required to re-state its financial statements due to fraud or non-compliance with any requirement under this Act and the rules made thereunder, the company shall recover from any past or present managing director or wholetime director or manager or Chief Executive Officer (by whatever name called) who, during the period for which the financial statements are required to be restated, received the remuneration (including stock option) in excess of what would have been payable to him as per restatement of financial statements.

70

71

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

72

200. Notwithstanding anything contained in this Chapter, 73[***] a company may, while according its approval under section 196, to any appointment or to any remuneration under section 197 in respect of cases where the company has inadequate or no profits, fix the remuneration within the limits specified in this Act, at such amount or percentage of profits of the company, as it may deem fit and while fixing the remuneration, 73[***] the company shall have regard to— (a) the financial position of the company; (b) the remuneration or commission drawn by the individual concerned in any other capacity; (c) the remuneration or commission drawn by him from any other company; (d) professional qualifications and experience of the individual concerned; (e) such other matters as may be prescribed74.

70.

71.

72.

73.

Enforced with effect from 1-4-2014.

Corresponds to section 637AA of the 1956 Act. Enforced with effect from 1-4-2014.

Words “the Central Government or” omitted by the Companies (Amendment) Act, 2017, w.e.f.

12-9-2018.

74. See rule 6 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014.

S. 202

COMPANIES ACT, 2013

1.252

75

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

201. (1) Every application made to the Central Government under 77[section 196] shall be in such form as may be prescribed78.

(2) (a) Before any application is made by a company to the Central Government under 79[section 196], there shall be issued by or on behalf of the company a general notice to the members thereof, indicating the nature of the application proposed to be made. (b) Such notice shall be published at least once in a newspaper in the principal language of the district in which the registered office of the company is situate and circulating in that district, and at least once in English in an English newspaper circulating in that district. (c) The copies of the notices, together with a certificate by the company as to the due publication thereof, shall be attached to the application.

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

81 202. (1) A company may make payment to a managing or whole-time director or manager, but not to any other director, by way of compensation for loss of office, or as consideration for retirement from office or in connection with such loss or retirement.

(2) No payment shall be made under sub-section (1) in the following cases, namely:— (a) where the director resigns from his office as a result of the reconstruction of the company, or of its amalgamation with any other body corporate or bodies corporate, and is appointed as the managing or whole-time director, manager or other officer of the reconstructed company or of the body corporate resulting from the amalgamation; (b) where the director resigns from his office otherwise than on the reconstruction of the company or its amalgamation as aforesaid; (c) where the office of the director is vacated under sub-section (1) of section 167; (d) where the company is being wound up, whether by an order of the Tribunal or voluntarily, provided the winding up was due to the negligence or default of the director; (e) where the director has been guilty of fraud or breach of trust in relation to, or of gross negligence in or gross mismanagement of, the conduct of 76

75.

76.

77.

78.

Corresponds to section 640B of the 1956 Act. Enforced with effect from 1-4-2014.

Substituted for “this Chapter” by the Companies (Amendment) Act, 2017, w.e.f. 12-9-2018.

See rule 7 and Form No. MR 2 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014.

79. Substituted for “any of the sections aforesaid” by the Companies (Amendment) Act, 2017, w.e.f. 12-9-2018.

80. Corresponds to section 318 of the 1956 Act. 81. Enforced with effect from 12-9-2013.

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the affairs of the company or any subsidiary company or holding company thereof; and (f) where the director has instigated, or has taken part directly or indirectly in bringing about, the termination of his office.

(3) Any payment made to a managing or whole-time director or manager in pursuance of sub-section (1) shall not exceed the remuneration which he would have earned if he had been in office for the remainder of his term or for three years, whichever is shorter, calculated on the basis of the average remuneration actually earned by him during a period of three years immediately preceding the date on which he ceased to hold office, or where he held the office for a lesser period than three years, during such period: Provided that no such payment shall be made to the director in the event of the commencement of the winding up of the company, whether before or at any time within twelve months after, the date on which he ceased to hold office, if the assets of the company on the winding up, after deducting the expenses thereof, are not sufficient to repay to the shareholders the share capital, including the premiums, if any, contributed by them.

(4) Nothing in this section shall be deemed to prohibit the payment to a managing or whole-time director, or manager, of any remuneration for services rendered by him to the company in any other capacity.

82

Appointment of key managerial personnel.83

84

203. (1) Every company belonging to such class or classes of companies as may be prescribed85 shall have the following whole-time key managerial personnel,— (i) managing director, or Chief Executive Officer or manager and in their absence, a whole-time director; (ii) company secretary; and (iii) Chief Financial Officer : Provided that an individual shall not be appointed or reappointed as the chairperson of the company, in pursuance of the articles of the company, as well as the managing director or Chief Executive Officer of the company at the same time after the date of commencement of this Act unless,— (a) the articles of such a company provide otherwise; or (b) the company does not carry multiple businesses: Provided further that nothing contained in the first proviso shall apply to such class of companies engaged in multiple businesses and which has appointed one 82. Corresponds to sections 269, 316 and 386 of the 1956 Act. 83. See also SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Table F of Schedule I. 84. Enforced with effect from 1-4-2014.

85. See rules 8 and 8A of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014.

S. 203

COMPANIES ACT, 2013

1.254

or more Chief Executive Officers for each such business as may be notified by the Central Government.86 (2) Every whole-time key managerial personnel of a company shall be appointed by means of a resolution of the Board containing the terms and conditions of the appointment including the remuneration.

(3) A whole-time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time: Provided that nothing contained in this sub-section shall disentitle a key managerial personnel from being a director of any company with the permission of the Board: Provided further that whole-time key managerial personnel holding office in more than one company at the same time on the date of commencement of this Act, shall, within a period of six months from such commencement, choose one company, in which he wishes to continue to hold the office of key managerial personnel: Provided also that a company may appoint or employ a person as its managing director, if he is the managing director or manager of one, and of not more than one, other company and such appointment or employment is made or approved by a resolution passed at a meeting of the Board with the consent of all the directors present at the meeting and of which meeting, and of the resolution to be moved thereat, specific notice has been given to all the directors then in India.

87 (4) If the office of any whole-time key managerial personnel is vacated, the resulting vacancy shall be filled-up by the Board at a meeting of the Board within a period of six months from the date of such vacancy.

88

[(5) If any company makes any default in complying with the provisions of this section, such company shall be liable to a penalty of five lakh rupees and every director and key managerial personnel of the company who is in default shall be liable to a penalty of fifty thousand rupees and where the default is a continuing one, with a further penalty of one thousand rupees for each day 86. Notification No. SO 1913(E), dated 25-7-2014 [Notified Company under Second Proviso to section 203(1) : Public companies having paid-up share capital of rupees one hundred crore or more and annual turnover of rupees one thousand crore or more which are engaged in multiple businesses and have appointed Chief Executive Officer for each such business].

87. In case of Government Companies, after sub-section (4), the following sub-section shall be inserted, namely :— “(4A) The provisions of sub-sections (1), (2), (3) and (4) of this section shall not apply to a managing director or Chief Executive Officer or manager and in their absence, a whole-time director of the Government Company.” - Notification No. GSR 463(E), dated 5-6-2015.

88. Substituted by the Companies (Amendment) Act, 2019, w.r.e.f. 2-11-2018. Prior to its substitution, sub-section (5) read as under : “(5) If a company contravenes the provisions of this section, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees and every director and key managerial personnel of the company who is in default shall be (Contd. on p. 1.255)

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S. 205

after the first during which such default continues but not exceeding five lakh rupees.]

Secretarial audit for bigger companies.

89

204.90 (1) Every listed company and a company belonging to other class of companies as may be prescribed91 shall annex with its Board’s report made in terms of sub-section (3) of section 134, a secretarial audit report, given by a company secretary in practice, in such form as may be prescribed91.

(2) It shall be the duty of the company to give all assistance and facilities to the company secretary in practice, for auditing the secretarial and related records of the company.

(3) The Board of Directors, in their report made in terms of sub-section (3) of section 134, shall explain in full any qualification or observation or other remarks made by the company secretary in practice in his report under subsection (1).

(4) If a company or any officer of the company or the company secretary in practice, contravenes the provisions of this section, the company, every officer of the company or the company secretary in practice, who is in default, shall be 91a [liable to a penalty of two lakh rupees].

Functions of company secretary.92 93 205.94 (1) The functions of the company secretary shall include,— (a) to report to the Board about compliance with the provisions of this Act, the rules made thereunder and other laws applicable to the company; (b) to ensure that the company complies with the applicable secretarial standards; (c) to discharge such other duties as may be prescribed95.

Explanation.—For the purpose of this section, the expression “secretarial standards” means secretarial standards issued by the Institute of Company (Contd. from p. 1.254)

89.

90.

91.

91a.

92.

93.

94.

95.

punishable with fine which may extend to fifty thousand rupees and where the contravention is a continuing one, with a further fine which may extend to one thousand rupees for every day after the first during which the contravention continues.”

Enforced with effect from 1-4-2014.

See also SS-2 - Secretarial Standard on General Meetings.

Public company having paid up share capital of Rs. 50 crore or more; or having turnover of Rs. 250 crore or more. See rule 9 and Form No. MR 3 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014.

Substituted for “punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees” by the Companies (Amendment) Act, 2020, w.e.f. 21-12-2020.

See also SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Enforced with effect from 1-4-2014.

See also SS-1 - Secretarial Standard on Meetings of Board of Directors.

See rule 10 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014.

Corporate Laws Set of 2 Volumes AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO PAGE NO. BINDING TYPE

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TAXMANN TAXMANN JANUARY 2022 45TH EDITION 9789392211614 3260 PAPERBACK

Rs. 1995 | USD 68 Description Taxmann’s Corporate Laws (Set of 2 Volumes) is the most authentic and comprehensive book covering India’s 15+ Corporate Laws.

The Present Publication is the 45th Edition, authored by Taxmann’s Editorial Board, and it covers the ‘Annotated’, ‘Amended’ & ‘Updated’ text of the following Laws: u Companies Act, 2013 with 60+ Rules [as amended by the Companies (Amendment) Act 2020 & Tribunal Reforms Act 2021] with the following: n Amended Schedules III and V of the Companies Act, 2013 n 60+ Relevant Rules framed the Companies Act n Key Forms Prescribed n Circulars & Notifications issued under the Companies Act 2013 n ICSI Guidance Note on Corporate Social Responsibility n Provisions of other Acts referred to in the Companies Act, 2013 n Words & Phrases judicially noticed n Companies (Amendment) Act, 2020 u Securities Contracts (Regulation) Act, 1956 [as amended by the Finance Act 2021] u Limited Liability Partnership Act, 2008 [as amended by the Limited Liability Partnership (Amendment) Act 2021] u Emblems and Names (Prevention of Improper Use) Act, 1950 u Foreign Exchange Management Act, 1999 [as amended up to date] u Foreign Contribution (Regulation) Act, 2010 [as amended by the Foreign Contribution (Regulation) Amendment Act 2020] u Depositories Act, 1996 u Insolvency and Bankruptcy Code, 2016 [as amended by the Insolvency and Bankruptcy Code (Amendment) Act 2021] with the following: n Provisions of other Acts referred to in the Insolvency and Bankruptcy Code n Insolvency and Bankruptcy Code (Amendment) Act, 2021 n Insolvency and Bankruptcy Code (Second Amendment) Act, 2020 n Insolvency and Bankruptcy Code (Amendment) Act, 2020 n Insolvency and Bankruptcy Code (Amendment) Act, 2019 n Subject Index u Competition Act, 2002 u Sick Industrial Companies (Special Provisions) Repeal Act, 2003 u Securities and Exchange Board of India (SEBI) Act, 1992 [as amended by the Finance Act 2021 and Tribunal Reforms Act 2021] u SEBI (Issue of Capital and Disclosure Requirements) Regulation, 2018 [as amended by the SEBI (ICDR) (Fourth Amendment) Regulations 2021] u SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 [as amended by the SEBI (LODR) (Sixth Amendment) Regulations 2021] with Clarifications u Banning of Unregulated Deposit Schemes Act, 2019 u Right to Information Act, 2005

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