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. Private Company Cannot: Note: He Cannot be counted in Quorum (Section 174(3) explanation). A private Company which has: Note: Giving loans/ guarantee/security to Group Companies now possible.
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 Recommended Articles
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