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This is only INDEX Part of
Companies Act 2013
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Interactive platform for Finance Professionals
All Updates and Books for Students and Professionals
(January 2021 Edition)
Indian Corporate world will never forget the historic date 08/08/2013 on which the Rajya Sabha passed
the Companies Bill, 2012 and it has now replaced 57 years old Companies Act, 1956 with the new
Companies Act, 2013 after receiving the assent of the President of India on the Thursday, 29 August
2013. The Companies Act, 2013 has been notified in the Official Gazette on 30th August, 2013.
Copyright © 2021 AUBSP
© AUBSP: All Updates and Books for Students and Professionals
Introduction
The Companies Act, 2013 (18 of 2013) is a modern, forward looking and International level
corporate law in India. It replaces the decades old Companies Act, 1956 (1 of 1956) which was
amended lots of time. The long-awaited Companies Bill 2013 got its assent in the Lok Sabha
on 18th December, 2012 and in the Rajya Sabha on 8th August, 2013. After having obtained
the assent of the President of India on 29th August, 2013, it has now become the Companies
Act, 2013. The new Act has introduced some new concepts like definition of One Person
Company, Small Company, Dormant Company, Independent Directors, Cross Border Mergers
etc. It also prescribes the functions of Company Secretary and the Concept of Corporate Social
Responsibility in the Indian context. New provisions are being brought out by the Act to meet
the challenges of the changing environment at the national as well as international level.
The Companies Act 2013 contains 470 sections under 29 chapters with seven schedules.
However, currently there are only 438 (470-39+7) sections remains in this Act. All 438 sections
are notified by the Ministry of Corporate Affairs (MCA) and majority of the Rules made to the
various Chapters/Sections of the Companies Act, 2013.
The first amendment to this Act has received the assent of the President on May 25, 2015 and
may be called the Companies (Amendment) Act, 2015 (21 of 2015). Thereafter, the Companies
(Amendment) Act, 2017 enacted by Parliament in the Sixty-eighth Year of the Republic of
India after receiving the assent of the President on the 3rd January, 2018. The Companies
(Amendment) Act, 2019 received the assent of the President on the 31st July, 2019.
The Companies (Amendment) Act, 2020 (29 of 2020) received the assent of the President on
the 28th September, 2020 and enacted by Parliament in the Seventy-first Year of the Republic
of India.
I prepared this E-Book for the help of students and professionals who may access it as per their
convenience while working on the desk or on the move through their computer, laptop, tablet,
iPad and mobile etc. Accordingly, this eBook is available in PDF as well as Kindle format. I
am very confident that this E-Book would be of immense help to CA/CS/CMA students in
preparing for their coming exams and Chartered Accountants, Cost Accountants and Company
Secretaries in carrying out their professional assignments.
Suresh Prasad
www.aubsp.com
Kolkata
Thursday, December 31, 2020
© AUBSP The Companies Act, 2013 Back to Index 2|PageDisclaimer
This e-Book on Companies Act, 2013 (18 of 2013) has been prepared for the benefit of Students
and Professionals. It is based on the Companies Act 2013, the Companies (Amendment) Act,
2015 (21 of 2015), the Companies (Amendment) Act, 2017 (1 of 2018), the Companies
(Amendment) Act, 2019 (20 of 2019), the Companies (Amendment) Act, 2020 (29 of 2020),
Rules, Orders, Circulars and Notifications as notified by the Ministry of Corporate Affairs.
Although we endeavour to provide accurate and updated information, there can be no guarantee
that such information is accurate as of the date it is received or that it will continue to be
accurate in the future. Accordingly, we accept no responsibility for any omission or errors it
may contain, whether caused by negligence or otherwise, or for any loss, however caused, or
sustained by any person that relies on it. Hence, the users are advised to cross check with the
original Act, Rules, Orders, Circulars, Notifications and Amendments before acting upon this
E-Book.
This E-Book on Companies Act, 2013 is only for your personal use. No part of this eBook may
be shared or reproduced in any manner or copied in any form or by any means without the
written prior permission from the author.
Author: Suresh Prasad
Website: www.aubsp.com
E-mail: spsmiter@gmail.com
© AUBSP The Companies Act, 2013 Back to Index 3|Page[18 of 2013]1
The Companies Act, 2013
[As amended by the Companies (Amendment) Act, 2020]
1
Received the assent of the President on 29th August, 2013.
© AUBSP: All Updates and Books for Students and ProfessionalsTable of Contents INDEX
INDEX
Table of Contents
(Chapter-wise and Section-wise)
Introduction ............................................................................................................................. 2
Disclaimer ................................................................................................................................ 3
INDEX ................................................................................................................................ 5
CHAPTER I PRELIMINARY (Sections 1-2) ........................................................................................ 65
1. Short title, extent, commencement and application ............................................................ 66
2. Definitions.......................................................................................................................... 67
(1) Abridged Prospectus: .............................................................................................................. 67
(2) Accounting Standards: ............................................................................................................ 67
(3) Alter or Alteration: .................................................................................................................. 67
(4) Appellate Tribunal: ................................................................................................................. 67
(5) Articles: ................................................................................................................................... 67
(6) Associate Company: ................................................................................................................ 67
(7) Auditing Standards:................................................................................................................. 67
(8) Authorised Capital or Nominal Capital: ................................................................................. 67
(9) Banking Company: .................................................................................................................. 68
(10) Board of Directors or Board: ................................................................................................ 68
(11) Body Corporate or Corporation: .......................................................................................... 68
(12) Book and Paper and Book or Paper: .................................................................................... 68
(13) Books of Account:.................................................................................................................. 68
(14) Branch Office: ....................................................................................................................... 68
(15) Called-up Capital:................................................................................................................. 68
(16) Charge:.................................................................................................................................. 68
(17) Chartered Accountant: .......................................................................................................... 69
(18) Chief Executive Officer: ........................................................................................................ 69
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(19) Chief Financial Officer: ........................................................................................................ 69
(20) Company: .............................................................................................................................. 69
(21) Company Limited by Guarantee: .......................................................................................... 69
(22) Company Limited by Shares: ................................................................................................ 69
(23) Company Liquidator: ............................................................................................................ 69
(24) Company Secretary or Secretary: ......................................................................................... 69
(25) Company Secretary in Practice: ........................................................................................... 69
(26) Contributory: ......................................................................................................................... 69
(27) Control: ................................................................................................................................. 70
(28) Cost Accountant: ................................................................................................................... 70
(29) Court: .................................................................................................................................... 70
(30) Debenture: ............................................................................................................................. 70
(31) Deposit: ................................................................................................................................. 71
(32) Depository: ............................................................................................................................ 71
(33) Derivative: ............................................................................................................................. 71
(34) Director: ................................................................................................................................ 71
(35) Dividend: ............................................................................................................................... 71
(36) Document: ............................................................................................................................. 71
(37) Employees’ Stock Option: ..................................................................................................... 71
(38) Expert: ................................................................................................................................... 71
(39) Financial Institution: ............................................................................................................. 71
(40) Financial Statement: ............................................................................................................. 71
(41) Financial Year: ..................................................................................................................... 72
(42) Foreign Company: ................................................................................................................ 72
(43) Free Reserves: ....................................................................................................................... 72
(44) Global Depository Receipt: ................................................................................................... 73
(45) Government Company:.......................................................................................................... 73
(46) Holding Company: ................................................................................................................ 73
(47) Independent Director: ........................................................................................................... 73
(48) Indian Depository Receipt: ................................................................................................... 73
(49) Interested Director: [Omitted] .............................................................................................. 73
(50) Issued Capital: ...................................................................................................................... 74
(51) Key Managerial Personnel: .................................................................................................. 74
(52) Listed Company: ................................................................................................................... 74
(53) Manager: ............................................................................................................................... 74
(54) Managing Director: .............................................................................................................. 74
(55) Member: ................................................................................................................................ 74
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(56) Memorandum: ....................................................................................................................... 75
(57) Net Worth: ............................................................................................................................. 75
(58) Notification: .......................................................................................................................... 75
(59) Officer: .................................................................................................................................. 75
(60) Officer who is in Default: ...................................................................................................... 75
(61) Official Liquidator: ............................................................................................................... 76
(62) One Person Company: .......................................................................................................... 76
(63) Ordinary or Special Resolution: ........................................................................................... 76
(64) Paid-up Share Capital or Share Capital Paid-up: ................................................................ 76
(65) Postal Ballot:......................................................................................................................... 76
(66) Prescribed: ............................................................................................................................ 76
(67) Previous Company Law: ....................................................................................................... 76
(68) Private Company:.................................................................................................................. 77
(69) Promoter: .............................................................................................................................. 77
(70) Prospectus: ............................................................................................................................ 78
(71) Public Company: ................................................................................................................... 78
(72) Public Financial Institution: ................................................................................................. 78
(73) Recognised Stock Exchange: ................................................................................................. 79
(74) Register of Companies: ......................................................................................................... 79
(75) Registrar: .............................................................................................................................. 79
(76) Related Party: ....................................................................................................................... 79
(77) Relative: ................................................................................................................................ 80
(78) Remuneration: ....................................................................................................................... 80
(79) Schedule: ............................................................................................................................... 80
(80) Scheduled Bank: .................................................................................................................... 80
(81) Securities: .............................................................................................................................. 80
(82) Securities and Exchange Board: ........................................................................................... 80
(83) Serious Fraud Investigation Office: ...................................................................................... 80
(84) Share: .................................................................................................................................... 80
(85) Small Company: .................................................................................................................... 80
(86) Subscribed Capital: ............................................................................................................... 81
(87) Subsidiary Company or Subsidiary:...................................................................................... 81
(88) Sweat Equity Shares: ............................................................................................................. 81
(89) Total Voting Power: .............................................................................................................. 81
(90) Tribunal:................................................................................................................................ 82
(91) Turnover: ............................................................................................................................... 82
(92) Unlimited Company: ............................................................................................................. 82
© AUBSP The Companies Act, 2013 Back to Index 7|PageTable of Contents INDEX
(93) Voting Right: ......................................................................................................................... 82
(94) Whole-time Director: ............................................................................................................ 82
(94A) Winding Up: ........................................................................................................................ 82
Exception/ Modification/ Adaptation: ........................................................................................... 82
CHAPTER II INCORPORATION OF COMPANY AND MATTERS INCIDENTAL THERETO (Sections 3-22) ........ 84
3. Formation of company........................................................................................................ 85
Exception/ Modification/ Adaptation: ........................................................................................... 85
3A. Members severally liable in certain cases .......................................................................... 87
4. Memorandum .................................................................................................................... 88
Exception/ Modification/ Adaptation: ........................................................................................... 90
5. Articles ............................................................................................................................... 92
6. Act to override memorandum, articles, etc.......................................................................... 93
7. Incorporation of company .................................................................................................. 94
8. Formation of companies with charitable objects, etc. .......................................................... 96
9. Effect of registration ........................................................................................................... 98
10. Effect of memorandum and articles................................................................................... 99
10A. Commencement of business etc. ................................................................................... 100
11. Commencement of business, etc. [Omitted w.e.f. 29-05-2015]......................................... 101
12. Registered office of company .......................................................................................... 102
Exception/ Modification/ Adaptation: ......................................................................................... 103
13. Alteration of memorandum ............................................................................................ 105
14. Alteration of articles ....................................................................................................... 107
15. Alteration of memorandum or articles to be noted in every copy ..................................... 108
16. Rectification of name of company ................................................................................... 109
17. Copies of memorandum, articles, etc., to be given to members ....................................... 110
18. Conversion of companies already registered ................................................................... 111
19. Subsidiary company not to hold shares in its holding company ........................................ 112
20. Service of documents ...................................................................................................... 113
Exception/ Modification/ Adaptation: ......................................................................................... 113
21. Authentication of documents, proceedings and contracts ................................................ 114
Exception/ Modification/ Adaptation: ......................................................................................... 114
22. Execution of bills of exchange, etc. .................................................................................. 115
CHAPTER III PROSPECTUS AND ALLOTMENT OF SECURITIES (Sections 23-42) .................................... 116
23. Public offer and private placement .................................................................................. 117
24. Power of Securities and Exchange Board to regulate issue and transfer of securities, etc. . 118
© AUBSP The Companies Act, 2013 Back to Index 8|PageTable of Contents INDEX
25. Document containing offer of securities for sale to be deemed prospectus ...................... 119
26. Matters to be stated in prospectus .................................................................................. 120
27. Variation in terms of contract or objects in prospectus .................................................... 122
28. Offer of sale of shares by certain members of company ................................................... 123
29. Public offer of securities to be in dematerialised form ..................................................... 124
30. Advertisement of prospectus .......................................................................................... 125
31. Shelf prospectus ............................................................................................................. 126
32. Red herring prospectus ................................................................................................... 127
33. Issue of application forms for securities........................................................................... 128
34. Criminal liability for misstatements in prospectus ............................................................ 129
35. Civil liability for misstatements in prospectus .................................................................. 130
36. Punishment for fraudulently inducing persons to invest money ....................................... 132
37. Action by affected persons .............................................................................................. 133
38. Punishment for personation for acquisition, etc., of securities ........................................ 134
39. Allotment of securities by company ................................................................................ 135
40. Securities to be dealt with in stock exchanges ................................................................. 136
41. Global depository receipt ................................................................................................ 137
42. Issue of shares on private placement basis ...................................................................... 138
CHAPTER IV SHARE CAPITAL AND DEBENTURES (Sections 43-72) .................................................... 141
43. Kinds of share capital ...................................................................................................... 142
Exception/ Modification/ Adaptation: ......................................................................................... 143
44. Nature of shares or debentures ....................................................................................... 144
45. Numbering of shares....................................................................................................... 145
46. Certificate of shares ........................................................................................................ 146
47. Voting rights ................................................................................................................... 147
Exception/ Modification/ Adaptation: ......................................................................................... 147
48. Variation of shareholders’ rights ..................................................................................... 148
49. Calls on shares of same class to be made on uniform basis............................................... 149
50. Company to accept unpaid share capital, although not called up ..................................... 150
51. Payment of dividend in proportion to amount paid-up .................................................... 151
52. Application of premiums received on issue of shares ....................................................... 152
53. Prohibition on issue of shares at discount........................................................................ 153
54. Issue of sweat equity shares ........................................................................................... 154
Exception/ Modification/ Adaptation: ......................................................................................... 154
55. Issue and redemption of preference shares ..................................................................... 155
© AUBSP The Companies Act, 2013 Back to Index 9|PageTable of Contents INDEX
56. Transfer and transmission of securities ........................................................................... 157
Exception/ Modification/ Adaptation: ......................................................................................... 158
57. Punishment for personation of shareholder .................................................................... 159
58. Refusal of registration and appeal against refusal ............................................................ 160
59. Rectification of register of members................................................................................ 161
60. Publication of authorised, subscribed and paid-up capital................................................ 162
61. Power of limited company to alter its share capital ......................................................... 163
62. Further issue of share capital .......................................................................................... 164
Exception/ Modification/ Adaptation: ......................................................................................... 165
63. Issue of bonus shares ...................................................................................................... 167
64. Notice to be given to Registrar for alteration of share capital ........................................... 168
65. Unlimited company to provide for reserve share capital on conversion into limited company
............................................................................................................................................ 169
66. Reduction of share capital ............................................................................................... 170
67. Restrictions on purchase by company or giving of loans by it for purchase of its shares .... 172
Exception/ Modification/ Adaptation: ......................................................................................... 172
68. Power of company to purchase its own securities ............................................................ 174
69. Transfer of certain sums to capital redemption reserve account....................................... 177
70. Prohibition for buy-back in certain circumstances ............................................................ 178
71. Debentures..................................................................................................................... 179
72. Power to nominate ......................................................................................................... 181
CHAPTER V ACCEPTANCE OF DEPOSITS BY COMPANIES (Sections 73-76A) ........................................ 182
73. Prohibition on acceptance of deposits from public........................................................... 183
Exception/ Modification/ Adaptation: ......................................................................................... 184
74. Repayment of deposits, etc., accepted before commencement of this Act........................ 185
75. Damages for fraud .......................................................................................................... 186
76. Acceptance of deposits from public by certain companies ................................................ 187
76A. Punishment for contravention of section 73 or section 76 ............................................. 188
CHAPTER VI REGISTRATION OF CHARGES (Sections 77-87) ............................................................ 189
77. Duty to register charges, etc............................................................................................ 190
78. Application for registration of charge .............................................................................. 192
79. Section 77 to apply in certain matters ............................................................................. 193
80. Date of notice of charge .................................................................................................. 194
81. Register of charges to be kept by Registrar ...................................................................... 195
82. Company to report satisfaction of charge ........................................................................ 196
Exception/ Modification/ Adaptation: ......................................................................................... 196
© AUBSP The Companies Act, 2013 Back to Index 10 | P a g eTable of Contents INDEX
83. Power of Registrar to make entries of satisfaction and release in absence of intimation from
company .............................................................................................................................. 197
84. Intimation of appointment of receiver or manager .......................................................... 198
85. Company’s register of charges......................................................................................... 199
86. Punishment for contravention ........................................................................................ 200
87. Rectification by Central Government in register of charges .............................................. 201
CHAPTER VII MANAGEMENT AND ADMINISTRATION (Sections 88-122) .............................................. 202
88. Register of members, etc. ............................................................................................... 203
89. Declaration in respect of beneficial interest in any share ................................................. 204
Exception/ Modification/ Adaptation: ......................................................................................... 205
90. Register of significant beneficial owners in a company ..................................................... 206
91. Power to close register of members or debenture holders or other security holders ......... 208
92. Annual return ................................................................................................................. 209
Exception/ Modification/ Adaptation: ......................................................................................... 210
93. [Omitted] ....................................................................................................................... 211
94. Place of keeping and inspection of registers, returns, etc. ................................................ 212
95. Registers, etc., to be evidence ......................................................................................... 213
96. Annual general meeting .................................................................................................. 214
Exception/ Modification/ Adaptation: ......................................................................................... 215
97. Power of Tribunal to call annual general meeting ............................................................ 216
98. Power of Tribunal to call meetings of members, etc. ........................................................ 217
99. Punishment for default in complying with provisions of sections 96 to 98 ........................ 218
100. Calling of extraordinary general meeting ....................................................................... 219
Exception/ Modification/ Adaptation: ......................................................................................... 219
101. Notice of meeting ......................................................................................................... 221
Exception/ Modification/ Adaptation: ......................................................................................... 221
102. Statement to be annexed to notice ............................................................................... 223
Exception/ Modification/ Adaptation: ......................................................................................... 224
103. Quorum for meetings .................................................................................................... 225
Exception/ Modification/ Adaptation: ......................................................................................... 225
104. Chairman of meetings ................................................................................................... 226
Exception/ Modification/ Adaptation: ......................................................................................... 226
105. Proxies ......................................................................................................................... 227
Exception/ Modification/ Adaptation: ......................................................................................... 228
106. Restriction on voting rights ........................................................................................... 229
Exception/ Modification/ Adaptation: ......................................................................................... 229
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107. Voting by show of hands ............................................................................................... 230
Exception/ Modification/ Adaptation: ......................................................................................... 230
108. Voting through electronic means................................................................................... 231
109. Demand for poll ............................................................................................................ 232
Exception/ Modification/ Adaptation: ......................................................................................... 232
110. Postal ballot ................................................................................................................. 233
111. Circulation of members’ resolution ............................................................................... 234
112. Representation of President and Governors in meetings ................................................ 235
113. Representation of corporations at meeting of companies and of creditors ..................... 236
114. Ordinary and special resolutions ................................................................................... 237
115. Resolutions requiring special notice .............................................................................. 238
116. Resolutions passed at adjourned meeting ..................................................................... 239
117. Resolutions and agreements to be filed ......................................................................... 240
Exception/ Modification/ Adaptation: ......................................................................................... 241
118. Minutes of proceedings of general meeting, meeting of Board of Directors and other
meeting and resolutions passed by postal ballot ................................................................... 242
Exception/ Modification/ Adaptation: ......................................................................................... 243
119. Inspection of minute-books of general meeting ............................................................. 244
120. Maintenance and inspection of documents in electronic form........................................ 245
121. Report on annual general meeting ................................................................................ 246
122. Applicability of this Chapter to One Person Company .................................................... 247
CHAPTER VIII DECLARATION AND PAYMENT OF DIVIDEND (Sections 123-127) .................................. 248
123. Declaration of dividend ................................................................................................. 249
Exception/ Modification/ Adaptation: ......................................................................................... 250
124. Unpaid Dividend Account .............................................................................................. 251
125. Investor Education and Protection Fund ........................................................................ 253
126. Right to dividend, rights shares and bonus shares to be held in abeyance pending
registration of transfer of shares........................................................................................... 256
127. Punishment for failure to distribute dividends ............................................................... 257
Exception/ Modification/ Adaptation: ......................................................................................... 257
CHAPTER IX ACCOUNTS OF COMPANIES (Sections 128-138) .............................................................. 258
128. Books of account, etc., to be kept by company .............................................................. 259
129. Financial statement ...................................................................................................... 261
Exception/ Modification/ Adaptation: ......................................................................................... 262
129A. Financial statement .................................................................................................... 264
130. Re-opening of accounts on court’s or Tribunal’s orders .................................................. 265
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131. Voluntary revision of financial statements or Board’s report .......................................... 266
132. Constitution of National Financial Reporting Authority .................................................. 267
133. Central Government to prescribe accounting standards ................................................. 271
134. Financial statement, Board’s report, etc. ....................................................................... 272
Exception/ Modification/ Adaptation: ......................................................................................... 274
135. Corporate Social Responsibility ..................................................................................... 276
Exception/ Modification/ Adaptation: ......................................................................................... 278
136. Right of member to copies of audited financial statement ............................................. 279
Exception/ Modification/ Adaptation: ......................................................................................... 280
137. Copy of financial statement to be filed with Registrar .................................................... 281
138. Internal audit ................................................................................................................ 283
Exception/ Modification/ Adaptation: ......................................................................................... 283
CHAPTER X AUDIT AND AUDITORS (Sections 139-148) .................................................................... 284
139. Appointment of auditors ............................................................................................... 285
Exception/ Modification/ Adaptation: ......................................................................................... 287
140. Removal, resignation of auditor and giving of special notice .......................................... 288
Exception/ Modification/ Adaptation: ......................................................................................... 289
141. Eligibility, qualifications and disqualifications of auditors............................................... 291
Exception/ Modification/ Adaptation: ......................................................................................... 292
142. Remuneration of auditors ............................................................................................. 293
143. Powers and duties of auditors and auditing standards ................................................... 294
Exception/ Modification/ Adaptation: ......................................................................................... 297
144. Auditor not to render certain services ........................................................................... 298
145. Auditor to sign audit reports, etc. .................................................................................. 299
146. Auditors to attend general meeting ............................................................................... 300
147. Punishment for contravention....................................................................................... 301
148. Central Government to specify audit of items of cost in respect of certain companies .... 302
CHAPTER XI APPOINTMENT AND QUALIFICATIONS OF DIRECTORS (Sections 149-172)........................ 304
149. Company to have Board of Directors ............................................................................. 305
Exception/ Modification/ Adaptation: ......................................................................................... 308
150. Manner of selection of independent directors and maintenance of databank of
independent directors .......................................................................................................... 310
Exception/ Modification/ Adaptation: ......................................................................................... 310
151. Appointment of director elected by small shareholders ................................................. 311
152. Appointment of directors .............................................................................................. 312
Exception/ Modification/ Adaptation: ......................................................................................... 313
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153. Application for allotment of Director Identification Number .......................................... 315
154. Allotment of Director Identification Number ................................................................. 316
155. Prohibition to obtain more than one Director Identification Number ............................. 317
156. Director to intimate Director Identification Number ...................................................... 318
157. Company to inform Director Identification Number to Registrar .................................... 319
158. Obligation to indicate Director Identification Number .................................................... 320
159. Penalty for default of certain provisions ........................................................................ 321
160. Right of persons other than retiring directors to stand for directorship .......................... 322
Exception/ Modification/ Adaptation: ......................................................................................... 322
161. Appointment of additional director, alternate director and nominee director ................ 324
Exception/ Modification/ Adaptation: ......................................................................................... 324
162. Appointment of directors to be voted individually ......................................................... 326
Exception/ Modification/ Adaptation: ......................................................................................... 326
163. Option to adopt principle of proportional representation for appointment of directors .. 327
Exception/ Modification/ Adaptation: ......................................................................................... 327
164. Disqualifications for appointment of director ................................................................ 328
Exception/ Modification/ Adaptation: ......................................................................................... 329
165. Number of directorships ............................................................................................... 330
Exception/ Modification/ Adaptation: ......................................................................................... 331
166. Duties of directors ........................................................................................................ 332
167. Vacation of office of director ......................................................................................... 333
168. Resignation of director .................................................................................................. 335
Exception/ Modification/ Adaptation: ......................................................................................... 335
169. Removal of directors ..................................................................................................... 336
170. Register of directors and key managerial personnel and their shareholding .................... 338
Exception/ Modification/ Adaptation: ......................................................................................... 338
171. Members’ right to inspect ............................................................................................. 339
Exception/ Modification/ Adaptation: ......................................................................................... 339
172. Punishment .................................................................................................................. 340
CHAPTER XII MEETINGS OF BOARD AND ITS POWERS (Sections 173-195) ........................................ 341
173. Meetings of Board ........................................................................................................ 342
Exception/ Modification/ Adaptation: ......................................................................................... 343
174. Quorum for meetings of Board ...................................................................................... 344
Exception/ Modification/ Adaptation: ......................................................................................... 344
175. Passing of resolution by circulation ............................................................................... 346
176. Defects in appointment of directors not to invalidate actions taken ............................... 347
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177. Audit Committee .......................................................................................................... 348
Exception/ Modification/ Adaptation: ......................................................................................... 349
178. Nomination and Remuneration Committee and Stakeholders Relationship Committee .. 351
Exception/ Modification/ Adaptation: ......................................................................................... 352
179. Powers of Board ........................................................................................................... 353
Exception/ Modification/ Adaptation: ......................................................................................... 354
180. Restrictions on powers of Board .................................................................................... 355
Exception/ Modification/ Adaptation: ......................................................................................... 356
181. Company to contribute to bona fide and charitable funds, etc. ...................................... 357
182. Prohibitions and restrictions regarding political contributions ........................................ 358
183. Power of Board and other persons to make contributions to national defence fund, etc. 360
184. Disclosure of interest by director ................................................................................... 361
Exception/ Modification/ Adaptation: ......................................................................................... 362
185. Loan to directors, etc. ................................................................................................... 363
Exception/ Modification/ Adaptation: ......................................................................................... 364
186. Loan and investment by company ................................................................................. 366
Exception/ Modification/ Adaptation: ......................................................................................... 368
187. Investments of company to be held in its own name...................................................... 370
188. Related party transactions ............................................................................................ 371
Exception/ Modification/ Adaptation: ......................................................................................... 372
189. Register of contracts or arrangements in which directors are interested......................... 374
Exception/ Modification/ Adaptation: ......................................................................................... 374
190. Contract of employment with managing or whole-time directors ................................... 375
191. Payment to director for loss of office, etc., in connection with transfer of undertaking,
property or shares ................................................................................................................ 376
192. Restriction on non-cash transactions involving directors ................................................ 378
193. Contract by One Person Company ................................................................................. 379
194. Prohibition on Forward Dealings in Securities of Company by Director or key Managerial
Personnel [Omitted w.e.f. 9-Feb-2018] ................................................................................. 380
195. Prohibition on Insider Trading of Securities [Omitted w.e.f. 9-Feb-2018] ........................ 381
CHAPTER XIII APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL (Sections 196-205) .. 382
196. Appointment of managing director, whole-time director or manager ............................. 383
Exception/ Modification/ Adaptation: ......................................................................................... 384
197. Overall maximum managerial remuneration and managerial remuneration in case of
absence or inadequacy of profits .......................................................................................... 385
Exception/ Modification/ Adaptation: ......................................................................................... 387
198. Calculation of profits ..................................................................................................... 389
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