List of All Exemptions to a Private Limited Company. In this article you can find all details for Exemptions available to a PVT ltd Company like – Details for Acceptance of Deposits From Members Made Easier For Certain Private Companies, Details for Maximum Number Of Audit In Case Of Private Company Relaxed. Now you can scroll down below n check more details for “All Exemptions to a Private Limited Company”

List of All Exemptions to a Private Limited Company

Disclaimer: This document contains the views and analysis of the author regarding the mentioned amendment Act and it is for personal and private circulation and not bearing any opinion or advice.

 

Note: Although 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)).

Note: The time limits cannot be increased, they can only be reduced

Private Companies borrowing monies from members up to aggregate limit of paid-up share capital & free-reserves need not require to comply with conditions mentioned in section 73(2)(a) to (e). However details of money so borrowed shall be filed with ROC in manner as may be specified. If Such Company borrows money from member then no need to:

  • Issue Circular
  • File circular with ROC
  • Maintain Deposit repaymentreserve
  • Provide deposit insurance

Note: This will reduce compliance for the companies. But there are certain resolutions which need to be filed with ROC. This is not a blanket exemption.

  • Content & length of notice
  • Explanatory Statement
  • Quorum
  • Chairman
  • Proxies
  • Restriction on voting rights
  • Show of hands & Poll

Private Company Cannot:

  • Reduce quorum below

  • (In re- Ram Villas Press Publication Pvt. Ltd- Kerala HC) 2. Increase time limit of 48 hours for depositing proxy form (Section 105(4))

  • Reject a proxy form if it fails to comply with specific requirement of AOA (Section 105(7))

  • Restrict voting right of a member other than restrictions in section 106(section 106(2))

  • Public Companies

  • Private Companies having paid up capital of Rs. 100 crore or more

  • Borrow exceeding paid up capital & free reserves.

  • Sell/lease/dispose of undertaking.

Note: He Cannot be counted in Quorum (Section 174(3) explanation).

A private Company which has:

  • No Body Corporate Shareholder
  • Not borrowed money from Bank/ Financial Institution/ Body Corporate exceeding lower of the following:
  • Twice its Paid up capital
  • Rs. 50 crore
  • No repayment default subsisting of such borrowings at time of giving loan

Note: Giving loans/ guarantee/security to Group Companies now possible.

  • Twice its Paid up capital

  • Rs. 50 crore

  • Shareholder’s Ratification in not required.

  • Schedule V not applicable.

  • MR-1 not required to be filed

  • T&C of appointment, remuneration not mandatory to be mentioned in Resolution.

Prepared By:Mohit Gupta,B Com. (Hons.), FCA, LLB,Alumnus Rajdhani College (DU)Alumnus Law Centre 2, Law Faculty (DU)For any query and feedback, please write to mohit@gmrindia.com

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