{"id":197,"date":"2015-07-10T11:18:34","date_gmt":"2015-07-10T11:18:34","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=197"},"modified":"2021-11-12T14:51:22","modified_gmt":"2021-11-12T09:21:22","slug":"exemptions-to-a-private-limited-company","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/exemptions-to-a-private-limited-company\/","title":{"rendered":"HIGHLIGHT ON EXEMPTIONS GIVEN TO PRIVATE LIMITED COMPANY"},"content":{"rendered":"

 <\/p>\n

\"1\"<\/a><\/p>\n

HIGHLIGHT ON EXEMPTIONS GIVEN TO PRIVATE LIMITED COMPANY<\/h1>\n

 <\/p>\n

MCA<\/a> has come out with a Notification dated 05.06.2015 which exempts Private Companies<\/a> from certain provisions of Companies Act, 2013.<\/p>\n

The List of exemptions available is given in table below:-<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
S.No.<\/strong><\/span><\/td>\nExemption Given<\/strong><\/span><\/td>\nSection<\/strong><\/span><\/td>\nMajor Impact<\/strong><\/span><\/td>\n<\/tr>\n
1.<\/td>\nDefinition Of Related Party Relaxed With Respect To Section 188:<\/span>–<\/strong>Does not include Holding, Subsidiary, Associate Company and sister concern (subsi of holding).<\/td>\n2(76)<\/strong><\/span><\/td>\nTransactions entered with them and falling under section 188 does not require compliance of section 188.Note: –<\/strong><\/span>\u00a0Although Holding company is excluded but Director(other than independent Director), KMP of holding company or their relative are still included in definition of Related Party. (Section 2(76)(ix)).<\/td>\n<\/tr>\n
2.<\/td>\n\n

Time Limits In Right Issue Can Be Reduced:-<\/strong><\/span>Sending of offer letter min 3 days period\u00a0before opening of offer.<\/p>\n

AND<\/p>\n

Minimum & maximum offer period of 15 & 30 days respectively.<\/p>\n

Can be reduced, if 90% members give their consent in writing\/electronic mode.<\/p>\n<\/td>\n

62(1)(a)<\/strong>&<\/strong>62(2)<\/strong><\/span><\/td>\nIn case of emergency, the mentioned time limits an be reduced with consent of shareholders.Note:<\/span>–<\/strong>\u00a0The time limits cannot be increased, they can only be reduced.<\/td>\n<\/tr>\n
3.<\/td>\n\n

Acceptance Of Deposits From Members Made Easier For Certain Private Companies:-<\/strong><\/span>Private Companies borrowing monies from members upto aggregate limit of paid-up share capital & free-reserves need not require to comply with conditions mentioned in section 73(2)(a) to (e).<\/p>\n

\u00a0<\/strong><\/p>\n

However details of money so borrowed shall be filed with ROC in manner as may be specified.<\/p>\n<\/td>\n

73(2)<\/strong>(a) to (e)<\/strong><\/span><\/td>\n\n

If Such Company borrows money from member then no need to:-\u00a7\u00a0 Issue Circular.\u00a7\u00a0 File circular with ROC.<\/p>\n

\u00a7\u00a0 Maintain Deposit\u00a0repayment\u00a0reserve.<\/p>\n

\u00a7\u00a0 Provide deposit insurance.<\/p>\n

 <\/td>\n<\/tr>\n

4.<\/td>\nNo Need To File Mgt-14 For Board Resolutions:-<\/strong><\/span>\u00a0<\/strong>Any Board resolution mentioned in section 179 read with rule 8 of Companies (Meeting of Board & its power) Rules, 2014 is now not required to be filed with ROC.<\/td>\n117(3)(g)<\/strong><\/span><\/td>\nSaving in ROC filing costs.<\/td>\n<\/tr>\n
5.<\/td>\n\n

Articles Of A Private Company May Override Provisions Pertaining To:-<\/strong><\/span>\u00a0<\/strong>1.\u00a0\u00a0\u00a0\u00a0\u00a0 Content & length of notice.<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0 Explanatory Statement.<\/p>\n

3.\u00a0\u00a0\u00a0\u00a0\u00a0 Quorum.<\/p>\n

4.\u00a0\u00a0\u00a0\u00a0\u00a0 Chairman.<\/p>\n

5.\u00a0\u00a0\u00a0\u00a0\u00a0 Proxies.<\/p>\n

6.\u00a0\u00a0\u00a0\u00a0\u00a0 Restriction on voting rights.<\/p>\n

7.\u00a0\u00a0\u00a0\u00a0\u00a0 Show of hands & Poll.<\/p>\n

 <\/p>\n

(Position brought at par with Companies Act, 1956).<\/td>\n

\u00a0<\/strong>\u00a0<\/strong>101 to 107 &<\/strong><\/span>109<\/strong><\/span><\/td>\n\n

Private Company\u00a0may override by its articles mentioned provisions.However, a Private Company Cannot:-<\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0 Reduce quorum below 2(In re- Ram Villas Press Publication Pvt. Ltd- Kerela HC).<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0 Increase time limit of 48 hours for depositingproxy form\u00a0(Section 105(4)).<\/p>\n

3.\u00a0\u00a0\u00a0\u00a0\u00a0 Reject a proxy form if it fails to comply with specific requirement ofAOA\u00a0(Section 105(7)).<\/p>\n

4.\u00a0\u00a0\u00a0\u00a0\u00a0 Restrict voting right of a member other than restrictions in section 106\u00a0(section 106(2)).<\/td>\n<\/tr>\n

6.<\/td>\n\n

Maximum No. Of Audit In Case Of Private Company Relaxed:-<\/strong><\/span>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/strong>Text of notification:-\u00a0\u201cOther than OPC, Dormant, Small Companies and Private Companies having paid up capital of less than Rs. 100 Crores shall be inserted after 20 Companies.\u201d<\/p>\n

\n<\/td>\n

\u00a0<\/strong>\u00a0<\/strong>\u00a0<\/strong>141(3)(g)<\/strong><\/span><\/td>\n\n

\u00a0Limit of 20 Companies only includes:-<\/strong><\/span>1.\u00a0\u00a0\u00a0\u00a0\u00a0 Public Companies.<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0 Private Companies having paid up capital of Rs. 100 crore or more.<\/p>\n<\/td>\n<\/tr>\n

7.<\/td>\nCandidature Not Required For Appointment Of Director At General Meeting.<\/td>\n160<\/strong><\/span><\/td>\nAmount of Rs. 1 lakh not required to be deposited at least 14 days before GM.<\/td>\n<\/tr>\n
8.<\/td>\nAppointment Of Directors Need Not To Be Voted Individually.<\/td>\n162<\/strong><\/span><\/td>\nMore than 1 director can be appointed via single resolution.<\/td>\n<\/tr>\n
9.<\/td>\nRestrictions On Powers Of Board Not To Apply:-<\/td>\n180<\/strong><\/span><\/td>\n\n

Private Company can now without shareholder\u2019s approval:-1.\u00a0\u00a0\u00a0\u00a0\u00a0 Borrow exceeding paid up capital & free reserves.<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0 Sell\/lease\/dispose of undertaking.<\/td>\n<\/tr>\n

10.<\/td>\nIntrested Director Can Participate In Board Meeting After Disclosure Of Interest.<\/td>\n184<\/strong><\/span><\/td>\nInterested Director can now participate in agenda in which he is interested.Note:-<\/strong><\/span>\u00a0He Cannot be counted in Quorum (Section 174(3) explanation).<\/td>\n<\/tr>\n
11.<\/td>\n\n

Loans\/Guarantee\/Security Can Be Given To Director And Person In Whom He Is Intereted By Certain Private Companies:-<\/strong>\u00a0<\/strong><\/span>A private Company which has:-<\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0 No Body Corporate Shareholder.<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0 Not borrowed money from Bank\/ FinanicialInstituition\/ Body Corporate exceeding\u00a0lower of the following:-<\/p>\n

i.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Twice it\u2019spaid up capital.<\/p>\n

ii.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs. 50\u00a0crore.<\/p>\n

3.\u00a0\u00a0\u00a0\u00a0\u00a0 No repayment default subsisting of such borrowings at time of giving loan.<\/td>\n

\u00a0<\/strong>\u00a0<\/strong>185<\/strong><\/span><\/td>\nGiving of loans\/ guarantee\/security to Group Companies now possible.<\/td>\n<\/tr>\n
12.<\/td>\nRestriction On Voting Right In General Meeting In Case Of Related Party Transaction Not Applicable.<\/td>\n188(1) 2nd proviso<\/strong><\/span><\/td>\nMember although being related party to the concerned resolution can still cast his vote at GM.<\/td>\n<\/tr>\n
13.<\/td>\nShareholder\u2019s Ratification Not Required For Appointment Of Md\/Wtd.<\/td>\n196(4) &(5)<\/strong><\/span><\/td>\n\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0 Shareholder\u2019s Ratification in notrequired.2.\u00a0\u00a0\u00a0\u00a0\u00a0 Schedule V not applicable.3.\u00a0\u00a0\u00a0\u00a0\u00a0 MR-1 not required to be filed.<\/p>\n

4.\u00a0\u00a0\u00a0\u00a0\u00a0 T&C of appointment, remuneration not mandatory to be mentioned in resolution.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.<\/p>\n

Hope the information will assist you in your Professional\u00a0endeavors. For query or help, contact:\u00a0\u00a0singh@carajput.com<\/a>\u00a0or call at 9555555480.<\/p>\n

Read more about<\/span> : CLOSURE OF SUBSIDIARY COMPANY<\/a><\/p>\n

Read more about :\u00a0Summary of New MCA official updates under the Company Act 20<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

  HIGHLIGHT ON EXEMPTIONS GIVEN TO PRIVATE LIMITED COMPANY   MCA has come out with a Notification dated 05.06.2015 which exempts Private Companies from certain provisions of Companies Act, 2013. The List of exemptions available is given in table below:- S.No. Exemption Given Section Major Impact 1. Definition Of Related Party Relaxed With Respect To …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[3074,3072,3075,3073],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/197"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=197"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/197\/revisions"}],"predecessor-version":[{"id":18713,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/197\/revisions\/18713"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}