MCA Notification dt. 13.06.2017 Exemptions to Section 8 Companies:
MCA vide Notification No. G.S.R. ………(E) on Tuesday, 13th June, 2017 amended the previous notification no. G.S.R. 466(E) dt. 5th June, 2015 in respect of Exemptions to Section 8 Companies. Vide said notification following exemptions have been granted:
- Clause (b) & first proviso to Section 149(1): Provision relating to max. of 15 directors on Board has been exempted for Sec 8 Companies and hence no requirement of passing special resolution for appointing more than 15 directors. (previously the exemption was for both min. & max. no. of directors)
- Section 186(7): provision of this sub-section relating to rate of interest should not be lower than prevailing yield rate shall not be applicable to Section 8 Company in which 26% or more of paid-up share capital is held by the CG and / or SG, in respect of loans provided by it for funding Industrial Research and Development projects in furtherance of its objects.
Further, it has been stated that the said exceptions, modifications and adaptations shall be applicable to Section 8 Company which has not defaulted in filing its financial statements u/s 137 & annual return u/s 92 of the Act.
The said notification can be accessed at the following link:ExemptionSection8Companies_13.06.2017