• Deepak Sharma

Companies (Meetings of Board and its Powers) Amendment Rules 2019

Updated: Nov 11, 2019

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i)l


GOVERNMENT OF INDIA

MINISTRY OF CORPORATE AFFAIRS

Notification


New Delhi, the 11th October, 2019


G.S.R. __ (E).- In exercise of the powers conferred by sections 173, 177, 178 and section 186 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Meetings of Board and its Powers) Rules, 2014, namely:-


1. (1) These rules may be called the Companies (Meetings of Board and its Powers) Amendment Rules, 2019.


(2) They shall come into force on the date of their publication in the Official Gazette.


2. In the Companies (Meetings of Board and its Powers) Rules, 2014, in rule 11, in sub-rule (2), for the words "business of financing of companies", the words "business of financing industrial enterprises" shall be substituted.


Rule 11 of Companies (Meetings of Board and its Powers) Rules, 2014 after this amendment:


11 Loan and investment by a company under section 186 of the Act.

(1) Where a loan or guarantee is given or where a security has been provided by a company to its wholly owned subsidiary company or a joint venture company, or acquisition is made by a holding company, by way of subscription, purchase or otherwise of, the securities of its wholly owned subsidiary company, the requirement of sub-section (3) of section 186 shall not apply:


Provided that the company shall disclose the details of such loans or guarantee or security or acquisition in the financial statement as provided under sub-section (4) of section 186.


(2) For the purposes of clause (a) of sub-section (11) of section 186, the expression "business of financing industrial enterprises" shall include, with regard to a Non-Banking Financial Company registered with Reserve Bank of India, "business of giving of any loan to a person or providing any guaranty or security for due repayment of any loan availed by any person in the ordinary course of its business".


(3) No company registered under section 12 of the Securities and Exchange Board of India Act, 1992 and also covered under such class or classes of companies which may be notified by the Central Government in consultation with the Securities and Exchange Board, shall take any inter-corporate loan or deposits, in excess of the limits specified under the regulations applicable to such company, pursuant to which it has obtained certificate of registration from the Securities and Exchange Board of India.

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