The Companies (Meetings of Board and its Powers) Amendment Rules, 2018

The Companies (Meetings of Board and its Powers) Amendment Rules 2018

Introduction

Recently Ministry of Corporate Affairs notified various Sections of the Companies Amendment Act, 2017 to further amend the Companies Act, 2013. This article provides an overview of the consequential amendment rules made in the corresponding Rule i.e.  The Companies (Meetings of Board and its Powers) Amendment Rules 2018

The Companies (Meetings of Board and its Powers) Amendment Rules 2018

Official Notification by Ministry of Corporate Governance – G.S.R. 429 (E)

In this relation the Companies (Meetings of Board and its Powers) Rules, 2014 is amended to provide that the special resolution should specify the total amount up to which the Board of Directors are authorized to provide such loans or guarantee, security or acquire shares of other companies.

It is noteworthy that the definition of an investment company has been modified to provide that a company would be deemed to be principally engaged in the business of acquisition of shares, debentures, or other securities if its:

  • Assets in the form of investment in shares, debentures, or other securities constitute not less than 50 percent of its total assets, or
  • Its income derived from investment business constitutes less than 50 percent as a proportion of its gross income.

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Note:- The companies (Meetings of Board and its Powers) Rules, 2014 were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide notification number G.S.R. 240(E), dated the 31st March 2014 and subsequently amended as follows:-

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