Section 372a of companies act 1956 pdf free

Be it enacted by parliament in the sixth year of the republic of india as follows 1. For giving up free hand to the industries, a drastic change was made. Introduction to companies act 19561 free download as powerpoint presentation. The securities contracts regulation act, 1956 scra and the rules made thereunder the depositories act, 1996 and the regulations and byelaws framed thereunder. The companies act 1956 1st page repealed see the companies act 20 the companies act 1956 2nd page repealed see the companies act 20. Format of all statutory registers under companies act 1.

The new act provides that intercorporate investments not to be made through more than two layers of investment companies. Clarification on section 372a of the companies act, 1956. Definitions of company, existing company, private company and public company 4. Penalty for contravention of section 369, 370 or 370a. Companies act 1956 see section 372a of companies act 1956. The companies act, 1956 section 303 to 674 the schedule. The act contains the mechanism regarding organizational, financial, and managerial, all the relevant aspects of a company. Inquiry into working of sick industrial companies sections of companies act, 1956. Group 1 aarti singh, azhar hussain, jyoti nawlani, nemchand meena, renuka sharma companies act. Further, the exemption available from the provisions of section 372a of the 1956 act to private companies as well as loans or investment given or made by a holding company to its subsidiary company are no longer.

Companies acts section 185, 186 and 372a ambiguities. Inquiry into working of sick industrial companiessections of companies act, 1956. X x x x extracts x x x x b extracts may be taken therefrom and copies thereof may be required, by any member of the company to the same extent, in the same manner, and on payment of the same fees as in the case of the register of members of the company. Applicability of section 372a companies act 1956 abcaus. The companies act, 20 has come with a change in the theory of loan and investment by. There is no such provision under section 372a of erstwhile companies act, 1956. Section 372a of the companies act, 1956 the act deals with intercorporate loan, investment, guarantee and. The issue has been examined with reference to applicability of section 372a of the companies act, 1956 visavis section 185 of the companies act, 20. Stakeholders have requested for similar clarification w. Lesson 16 intercorporate loans, investments, guarantees.

A detailed view about section 25 company has been illustrated as under a introduction. Old sections for new sections you can use this tool to find out which section of the companies act 1956 corresponds to the section under the new companies act 20 and. Section 260 of the companies act, 1956 the act holds the office up to the date of this annual general meeting, and in whose respect the company has received a notice along with requisite deposit from a member under section 257 of the act, proposing the candidature of mr. Similarly, another type of company incorporated under the companies act, 1956 is section 25 companies. In the companies act, 1956 section 372a deals with inter corporate loans and investments.

Nov 20, 20 earlier, mca has notified 98 section wef 12. Section 372a of the companies act,1956 corporate law forum. The power to sanction intercorporate loansinvestments or giving of guarantee or providing security under section 372a. Section 185 and 186 loans and investments by company. This circular will apply till section 186 is notified, and if and when section 186 is notified, there will be again ambiguity as section 186 does not grant exemptions in holding and wholly owned subsidiary cases like section 372a does. Old sections for new sections you can use this tool to find out which section of the companies act 1956 corresponds to the section under the new companies act 20 and vice versa, for better understanding of the new law. In terms of section 1801c of the companies act, 20, which has replaced section 293 of the companies act, 1956, the board of directors of a company, shall exercise the power to borrow money, where money to be borrowed, together with. Foreign exchange management act, 1999 and the rules and regulations made thereunder to the. Statement pursuant to section 212 of the companies act, 1956. Companies act, 1956 section 303 to 674 latest laws. May 09, 2012 higher the risk more is the profit of any concern. Provisions as to certain loans which could not have been made if sections 369 and 370 were in force.

Satish deshmukh for the office of director of the company, be and is hereby. As per the provisions of section 2931d of the companies act, 1956, the board of directors of the company cannot, except with the permission of the shareholders, borrow monies in excess of the limits set out therein. Manner of reporting on section 2273bb of the companies act, 1956. Clarification under section 372a3 of the companies act,1956. The companies incorporated by means of statute of special act of the parliament or any state legislative eg. Various companies have been incorporated under the companies act, 1956. These bonds carry a lower rate of interest, currently in the range of 6. Powers of tribunal to make suitable order on completion of inquiry424d. Under the companies act, 20 inter corporate loans and investment plays a very vital role for the growth of industries as there is result in the flow of funds for the group companies or other companies who are in the need of funds. There is no such condition in section 185 of companies act, 20 and section 372a of companies act, 1956. Under the companies act, 20 inter corporate loans and. Saving of prosecutions instituted by liquidator or court under section 237 of act 7 of 19. Format of all statutory registers under companies act.

Section 372a of the companies act legal service india. The companies act, 20 act has come up with a change in the concept of loan and investment by company. Inter corporate loans and investments free legal news. In india, the companies act, 1956, is the most important piece of legislation that empowers the central government to regulate the formation, financing, functioning and winding up of companies.

The companies registered under the companies act, 1956 or the earlier companies. Apr 04, 20 33 prescribed means, as respects the provisions of this act relating to the winding up of companies except subsection 5 of section 503, 23subsection 3 of section 550, section 552 and subsection 3 of section 555, prescribed by rules made by the supreme court in consultation with 24 the tribunal, and as respects the other. Clarification under section 372a3 of the companies act,1956 it is observed from the budget 2014 authorizes union govt. A notice under section 257 of the act, proposing the appointment of sri ravi kant as a director, liable to retire by rotation, has been received from a member together with the requisite deposit of rs. Section 372 in the companies act, 1956 indian kanoon. Further, the provisions of section 372a of the companies act 1956 has no applicability which makes obligatory to charge interest on loans is not applicable in case of a loan being granted by a holding company to its wholly owned subsidiaries in view. Have included the probe of slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. As per the provisions of section 372a of the companies act, 1956 the board of directors of a company can make investment beyond the prescribed ceiling of 60 % of the aggregate of the paidup share capital and free reserves andor upto 100% of the aggregate of free reserves of the company if special resolution is passed by the. Section 186 of companies act, 20 loan and investment. Pursuant to section 173 and 192a of the companies act, 1956 item no.

Section 372 a of the companies act, 1956 deals with the inter corporate loan and investment. Section 372a of the companies act, 1956 the act deals with intercorporate loan, investment, guarantee and securities in connection with loan. Act, 1960, choose not more than two of those companies as companies in which he wishes to continue to hold the office of managing director or manager, as the case may be. An act to consolidate and amend the law relating to companies and certain other associations. Clarification with regard to applicability of provision of section 372a of the companies act 1956. Section 25 companies in the companies act, 1956 advisory. Companies act the companies act is a successor to the indian companies act of 19 and is a consolidation of many successive amendment acts, statutory rules and principles laid down in decisions of. Companies act, 1956 for inspection of general minutes book us. Companies act 1956 by study material lecturing notes pdf. The companies act, 20 provisions relating to loans and. Company law tribunal, mumbai bench, mumbai register of charges us. The word person has not been defined under the 20 act. Mar 05, 2015 section 372a of 1956 act covers only body corporate, whereas section 186 of the 20 act covers perons and body corporate.

Whether this will amount to investment under the provisions of section 372a of the companies act, 1956 for the listed company. Investments by company section 185 and 186 of companies act, 20 procedural aspects, carve outs, implication of violations, etc. Section 372a of the companies act, 1956, specifically exempts any loans made, any guarantee given or security provided or any investment made by a holding company to its wholly owned subsidiary. Section 372a inter corporate loaninvestmentguarantee. In a jv company wherein the indian listed company is providing know how and in lieu of that the jv company is allotting shares of 25%. Section 372a imposed restriction onlyforother bodycorporates. Further, the exemption available from the provisions of section 372a of the 1956 act to private companies as well as loans or investment given or made by. Introduction to companies act 19561 board of directors.

The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. Companies act, 1956 bare acts law library advocatekhoj. For the purposes of this clause, free reserves means all reserves created. Resolved that pursuant to section 372a and other applicable. Main provisions of companies act 1956 presented by. As per the provisions of section 260 of the companies act, 1956, his term of office expires at the ensuing annual general meeting. Powers of the board of directors of a company as per the indian companies act, 1956. Book companies act 1956 pdf download book companies act 1956 by pdf download author written.

Sep 19, 2016 investments by company section 185 and 186 of companies act, 20 procedural aspects, carve outs, implication of violations, etc. The companies act, 20 the act and the rules made thereunder. Section 372a of 1956 act covers only body corporate, whereas section 186 of the 20 act covers perons and body corporate. Ltd has given a interest free loan its subsidiary 100 % free reserves for the ceiling limit. As per section 231 of the income tax act 1961, person includes. This an act to consolidate and amend the law relating to companies. The companies act, 20 has been notified in the official gazette on 30th august, 20 but the provisions of this act shall come into force on such dates as the central government may notify in the. Powers of the board of directors of a company as per the.

In the matter of companies act, 1956 under sections 163 v. Borrow money which will make the total borrowings in excess of the aggregate of the paidup capital and free reserves of the company. The companies act, 20 passed by the parliament has received the assent of the president of india on 29th august, 20. All the four transactions are frequently taken place in any company and henceforth the section becomes more important and therefore it requires to special heed by virtue of strict penal provisions and. As per the provisions of section 372a of the companies act, 1956, a company cannot, except with the permission of the. In this connection, it is hereby clarified that registers maintained by companies pursuant to subsection 5 of section 372a of companies act, 1956 may continue as per requirements under these provisions and the new format prescribed vide form mbp2 shall be used for particulars entered in such registers on and from 1. In computing at any time the percentages specified in sub section 2 and the provisos thereto, the aggregate of the investments made by the investing company in other body or bodies corporate whether before or after the commencement of the companies amendment act, 1960 65 of 1960, up to that time shall be taken into account. In this connection, it is hereby clarified that registers maintained by companies pursuant to sub section 5 of section 372a of companies act, 1956 may continue as per requirements under these provisions and the new format prescribed vide form mbp2 shall be used for particulars entered in such registers on and from 1. List of statutory registers under companies act, 1956 sr. Loan and investment by company companies act 20 section 186.

222 884 427 1380 48 865 1283 164 549 53 679 793 1207 436 403 1185 575 134 587 1006 149 762 359 195 994 1363 705 728 935 522 434