Author Archive: cssaqib

AMENDMENT IN COMPANIES (MEETINGS OF BOARD AND ITS POWERS) RULES.

Companies have to take shareholders’ approval by way of passing of resolution, if RPT exceeds certain limits. These limits are provided in First Proviso of Section 188 read with rules 15(3) of the Companies (Meetings of Board and its Powers) Rules.

Ministry of Corporate Affairs vide its notification dated 30th March, 2017, has made amendments in Companies (Meetings of Board and its Powers) Amendment Rules. The amended sub rule (3) of Rule 15 is as follow:

Rule 15(3)  For  the  purposes  of  first  proviso  to  sub-section  (1)  of  section  188,  except  with  the  prior  approval  of  the company by a resolution a company shall not enter into a transaction or transactions where the transaction or transactions to be entered into;-

(a). as contracts or arrangements with respect to clauses (a) to (e) of sub-section (1) of section 188  with criteria, as mentioned below—

(i).  sale, purchase or supply of any goods or materials, directly or through appointment of agents exceeding ten per cent amounting to ten per cent or more  of  the  turnover of the Company or Rupees one hundred  Crore, whichever is lower   as  mentioned  in  clause  (a)  and  clause  (e)  respectively  of  sub-section  (1)  of section 188;

(ii). selling or  otherwise  disposing  of,  or  buying, property  of  any  kind  directly  or  through  appointment  of  agents exceeding ten  per cent amounting to ten per cent or more  of  net  worth of the Company or rupees one hundred  Crore, whichever is lower as mention in clause  (b)  and  clause  (e)  respectively  of  sub-section  (1)  of section 188;

(iii). leasing of property of any kind exceeding ten per cent amounting to ten per cent or more  of the net worth  of the Company  or  ten percent of  turnover ten per cent or more of turnover   of the company or rupees one hundred crore whichever is lower as mentioned in clause (c) of sub-section (1) of section 188;

(iv). availing or  rendering  of  any  services  directly   or  through  appointment  of  agents  exceeding ten  per cent amounting to ten per cent or more  of  the turnover  of the company or rupees fifty crore whichever is lower as mentioned in clause (d) and clause (e) of sub-section (1) of section 188.

You can download this notification from the following link

http://egazette.nic.in/WriteReadData/2017/175078.pdf

For Kashif Ali & Associates

(Company Secretaries)

CS Mohd Saqib

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‘STATUTORY AUDIT REPORT’ MUST DISCLOSE DETAILS OF ‘SPECIFIED BANK NOTES’.

Ministry of corporate affairs has vide its notification dated 30th March, 2017, has made amendments in Rule 11 of Companies (Audit and Auditors) Rules, 2017. As per these amendments ‘Statutory Auditors’  of every company has to give disclosure in his ‘Report’ about the details of Specified Bank Notes (SBNs) held and transacted during demonetization period by the Company. The format of disclosure is prescribed in these rules  by Ministry.

 

You can download the full text of this amended rules from the following link:

http://egazette.nic.in/WriteReadData/2017/175074.pdf

 

For Kashif Ali & Associates

CS Mohd Saqib

Company Secretary