Companies (Prospectus and Allotment of Securities) Amendment Rules, 2019

Respected,

The Ministry of Corporate Affairs vide its notification dated 22nd January, 2019 added sub-rule (11) after sub-rule (10) Rule 9A namely:-

“(11) This rule shall not apply to an unlisted public company which is:—

 (a) a Nidhi;

 (b) a Government company or

 (c) a wholly owned subsidiary.”

Pursuant to notification dated 2nd day of October, 2018 MCA comes up with Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018 which mandates all unlisted public company for issuing securities only in dematerialised form.

Conclusion:-

Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018 shall not apply on Nidhi; Government & wholly owned subsidiary company.


Notification Link

1. Companies (Prospectus and Allotment of Securities) Amendment Rules, 2019

http://www.mca.gov.in/Ministry/pdf/CompaniesProspectusAllotmentRule_23012019.pdf

2. Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018

http://www.mca.gov.in/Ministry/pdf/CompaniesProspectus3amdRule_10092018.pdf

The Companies (Amendment) Ordinance 2019

Respected,

On 12th January, 2019 the MINISTRY OF LAW AND JUSTICE (Legislative Department) had passed THE COMPANIES (AMENDMENT) ORDINANCE, 2019 which had inserted new Section 10A (Commencement of Business).

Pursuant to it a declaration is required to be filed by a director within 180 days of the date of incorporation in Form INC-20A with the Registrar that every subscriber to the memorandum has paid the value of shares agreed to be taken by him.

Applicability on the Company incorporated after 02/11/2018.

If any default is made in Compliance of the same, company shall be liable to penalty which may extend to Rs. 50,000/- and every officer who is in default shall be punishable with fine which may extend to Rs. 1,000/- for every day during which the default continues.

Where no declaration has been filed with the Registrar under clause (a) of sub-section (1) within 180 days of the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may initiate action for the removal of the name of the company from the register of companies.

LINK OF THE NOTIFICATION:-

http://www.mca.gov.in/Ministry/pdf/NotificationCAO2019_15012019.pdf