Tuesday, 17 February 2015

Small company Redefined

Companies (Removal of Dilficulties) Order, 2015 has been released by MCA dated February 13, 2015

In the Companies Act, 2013 (hereinafter referred to as the said Act, -
(as in section 2, in clause(85), in sub-clause (i), for the word "or" occurring at the end, the word "and" shall be substituted; and (b) in section 186 of the said Act, in sub section (11), in clause (b),after item (iii), the following item shall be inserted, namely:-
"(iv) made by a banking company or an insurance company or a housing finance company, making acquisition of securities in the ordinary
course of its business.".

The impact is as follows:

Small Company - ' A small company is now defined as a company (other than public company) whose paid up capital is upto Rs 50 lakhs AND turnover upto Rs 2 crores. Earlier it was OR.

Amendment in Section-186- The provision of section 186 except sub section (1) shall also not apply to any acquisition made by a banking company or an insurance company or a housing finance company, making acquisition of securities in the ordinary course of its business.

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