{"id":2339,"date":"2018-07-12T07:58:51","date_gmt":"2018-07-12T07:58:51","guid":{"rendered":"https:\/\/companyregistrationonline.in\/?p=2339"},"modified":"2025-06-28T08:05:36","modified_gmt":"2025-06-28T08:05:36","slug":"companies-amendment-act-2017-rules-notified","status":"publish","type":"post","link":"https:\/\/companyregistrationonline.in\/blog\/companies-amendment-act-2017-rules-notified\/","title":{"rendered":"Companies Amendment Act 2017-Summary of Rules Notified"},"content":{"rendered":"

On 3rd January 2018 Companies, Amendment Act 2017 received the assent of the President. Since the\u00a0Ministry of Corporate Affairs<\/a> has notified many sections of the Companies Amendment Act 2017 in a phased manner.\u00a0Ministry of Corporate Affairs vide notification dated: 05th<\/sup> July 2018 has amended many rules of the Companies Act, 2013 to support notified 75 sections of the Companies Amendment Act 2017<\/a>.<\/p>\n

Read:\u00a0Companies Amendment Act 2017- Summary of Sections Notified by MCA<\/a><\/p><\/blockquote>\n

Such amended Rules of\u00a0Companies Amendment Act 2017 are briefly discussed as follows:<\/p>\n

1. The Companies (Acceptance of Deposits) Amendment Rules, 2018<\/strong><\/h3>\n

Date of Enforcement: 15th August 2018<\/p>\n

Rule 4- Form and Particular of advertisements or circulars<\/p>\n

The following provision shall be inserted after Rule 4(1).<\/p>\n

Analysis:<\/p>\n

Certificate of the statutory auditor of the company is required to be attached in form DPT-1, which shall state that the company has not committed default in the repayment of deposits or the payment of interest on such deposits.
\nIn case a company had committed a default in the repayment of deposits, or in the payment of interest, a certificate of statutory auditor of the company shall be attached in Form DPT-1, which shall state that the company had made good the default and a period of five years has lapsed the date of making good the default as the case may be.
\nRule 5: Manner and extent of Deposit Insurance \u2013 OMITTED<\/p>\n

Rule 13: Maintenance of Liquid Assets and Creation of Deposit Repayment Reserve Account.<\/p>\n

The proviso of Rule 13 is SUBSTITUTED as follows:
\nThe amount remaining deposited shall not at any time fall below 20% of the number of deposits maturing during the financial year.<\/p>\n

Rule 14(1)(K): Register of Deposits \u2013OMITTED<\/p>\n

Form DPT-1 SUBSTITUTED by a new form<\/p>\n

Form DPT-3 SUBSTITUTED by the new form.<\/p>\n

Read:\u00a0The Companies (Acceptance of Deposits) Amendment Rules, 2018<\/a><\/p><\/blockquote>\n

2. The Companies (Registration of Charges) Amendment Rules, 2018<\/strong><\/h3>\n

Date of Enforcement: Date of publication in official Gazette.<\/p>\n

Rule 8: Satisfaction of Charge<\/p>\n

A Company or charge shall give intimation to the\u00a0Registrar in Form No. CHG-4 along with the Fee, within 300 days from the date of payment\u00a0or satisfaction in full or any charge registered under Chapter VI.<\/p>\n

Rule 12: Condonation of Delay and Rectification of Register of Charges<\/p>\n

The days of filing the satisfaction of charge are changed from thirty days to Three Hundred Days, in case the instrument creating or modifying a charge is not filed within a period of three hundred days from the date of its creation, which includes the acquisition of a property subject to a charge.<\/p>\n

Read:\u00a0The Companies (Registration of Charges) Amendment Rules, 2018<\/a><\/p><\/blockquote>\n

3. The Companies (Registration Offices and Fees) Third Amendment Rules, 2018<\/strong><\/h3>\n

Date of Enforcement:\u00a010th\u00a0July 2018<\/p>\n

Fee payable till the 30th April of every – financial year in respect of e-form DIR-3<\/a><\/strong> KYC as at the 31st March of the immediately previous year- NIL<\/p>\n

Fee payable in delayed cases- Rs. 5000<\/p>\n

It is to be noted that for the current financial (2018-2019), no fee shall be chargeable till the 31st August 2018, and fee of Rs.5000 shall be payable on or after the 1st September 2018.<\/p>\n

Read:\u00a0The Companies (Registration Offices and Fees) Third Amendment Rules, 2018<\/a><\/p><\/blockquote>\n

4. The Companies (Prospectus and Allotment of Securities) Amendment Rules, 2018<\/strong><\/h3>\n

Rule 3: Information to be stated in the prospectus-\u00a0OMITTED.<\/p>\n

Rule 4: Reports to be set out in the Prospectus-\u00a0OMITTED.<\/p>\n

Rule 5: Other matters and reports to be stated in the prospectus-\u00a0OMITTED.<\/p>\n

Rule 6: Period for which information to be provided in certain cases-\u00a0OMITTED.<\/p>\n

Read:\u00a0The Companies (Prospectus and Allotment of Securities) Amendment Rules, 2018<\/a><\/p><\/blockquote>\n

5. The Companies (Appointment of Directors) Second Amendment Rules, 2018<\/strong><\/h3>\n

Rule 5 \u2018Qualification of Independent Director\u2019 shall be numbered as Rule 5 sub-rule 1 and following sub-rule 2 followings shall be INSERTED:<\/p>\n

(2) None of the relatives of an independent director, for sub-clause (ii) and (iii) of clause (d) of sub-section (6) of section 149,-<\/p>\n

(i) is indebted to the company, its holding, subsidiary or associate company or their promoters, or directors; or<\/p>\n

(ii) has given a guarantee or provided any security in connection with the indebtedness of any third person to the company, its holding, subsidiary or associate company or their promoters, or directors of such holding company,<\/p>\n

for an amount of fifty lakhs rupees, at any time during the two immediately preceding financial years or during the current financial year.<\/p>\n

Visit our blog to know about Managerial Remuneration and\u00a0Procedure to Obtain DIN\u00a0(with updates according to\u00a0Companies Amendment Act 2017)<\/p>\n

Read:\u00a0Companies (Acceptance of Deposits ) Amendment Rules, 2018<\/a><\/p><\/blockquote>\n

6. The Companies (Meetings of Board and its Powers) Amendment Rules, 2018<\/strong><\/h3>\n

Rule 4:\u00a0Matters not to be dealt with in a meeting through video conferencing or other audiovisual means,\u00a0the following\u00a0Proviso\u00a0shall be\u00a0INSERTED-<\/p>\n

\u201cProvided that where there is quorum presence in a meeting through the physical presence of directors, any other director may participate through video conferencing or other audiovisual means\u201d.<\/p>\n

Rule 6:\u00a0Committees of the Board:<\/p>\n

For the words \u201cevery listed company\u201d, the words \u201cevery listed public company\u2019 shall be a substitute<\/p>\n

Rule 13:\u00a0\u2018Special Resolution\u2019\u00a0shall be\u00a0SUBSTITUTED.<\/p>\n

A resolution passed at a general meeting in terms of sub-section (3) of Section 186 to give any loan or guarantee or investment or providing any security or the acquisition under sub-section (2) of section 186 shall specify the total amount up to which the Board of directors is authorized to give such loan or guarantee, to provide such security or make such acquisition:<\/p>\n

Provided that the company shall disclose to the members in the financial statement the full particulars under the provisions of sub-section (4) of section 186.<\/p>\n

\n

Read:\u00a0<\/strong>The Companies (Meetings of Board and its powers) Amendment Rules, 2018<\/a><\/p>\n<\/blockquote>\n

7. The Companies (Audit and Auditors) Amendment Rules, 2018<\/strong><\/h3>\n

Rule 3:\u00a0 \u2018Manner and procedure of selection and appointment of auditors\u2019<\/p>\n

Explanation-\u00a0OMITTED
\nThe proviso to sub-rule 7-\u00a0OMITTED
\nRule 9: \u2018Liability to devolve on concerned partners only\u2019:\u00a0OMITTED<\/p>\n

In Rule 10A: \u2018for the words \u201cadequate internal financial controls system\u201d, the words \u201cinternal financial controls about financial statements\u201d shall be SUBSTITUTED.<\/p>\n

Rule 14: \u2018Remuneration of the Cost Auditor\u2019<\/p>\n

(a) in clause (a), in sub-clause (i), for the words, \u201cwho is a cost accountant in practice\u201d, the words \u201cwho is a cost accountant\u201d shall be substituted;<\/p>\n

(b) in clause (b) for the words \u201cwho is a cost accountant in practice\u201d, the words \u201cwho is a cost accountant\u2019 shall be substituted.<\/p>\n

Apply for Private Limited Company Registration<\/a> with Company Registration Online<\/a>.<\/p><\/blockquote>\n

8. The Companies (Share Capital and Debentures) Amendment Rules, 2018<\/strong><\/h3>\n

Rule 5 sub-rule 3 \u2018Certificate of shares (where shares are not in Demat form)\u2019 shall be SUBSTITUTED as Follows:<\/p>\n

\u201c(3) Every certificate shall specify the shares to which it relates and the amount paid-up thereon and shall be signed by two directors or by a director and the company secretary, wherever the company has appointed a company secretary<\/p>\n

Provided that in case the company has a common seal it shall be affixed in the presence of persons required to sign the certificate.<\/p>\n

Explanation. \u2013 For this sub-rule, it is hereby clarified that,-<\/p>\n

(a) in the case of a One Person Company, it shall be sufficient if the certificate is signed by a director and the company secretary or any other person authorized by the Board for the purpose.<\/p>\n

(b) a director shall be deemed to have signed the share certificate if his signature is printed thereon as facsimile signature using any machine, equipment, or other mechanical means such as engraving in metal or lithography or digitally signed, but not using a rubber stamp, provided that the director shall be personally responsible for permitting the affixation of his signature thus and the safe custody of any machine, equipment or other material used for the purpose.<\/p>\n

9. The Companies (Registration Offices and Fees) Second Amendment Rules, 2018<\/strong><\/h3>\n

In Proviso of Rule 10 sub-rule 3 \u2018Procedure on receipt of an application or form or document electronically\u2019\u00a0shall be\u00a0SUBSTITUTED\u00a0as Follow:<\/p>\n

\u201cProvided that Registrar shall allow fifteen days, time for re-submission in case of reservation of a name through web service -\u201cRUN for rectifications of defects if any.\u201d<\/p>\n

Explanation.- For this rule, it is hereby clarified that, if the appointment is not ratified by the members of the company, the Board of Directors shall appoint another individual or firm as its auditor or auditors after following the procedure laid down on this behalf under the Act<\/p>\n

Provided that such appointment shall be subject to ratification in every annual general meeting until the sixth such meeting by way of the passing of an ordinary resolution.<\/p>\n

Read:\u00a0The Companies (Registration offices and Fees) Second Amendment Rules, 2018<\/a><\/p><\/blockquote>\n

Our team is trained to support you with any kind of help regarding the Companies Amendment Act 2017 as well as Company Registration<\/a> of all kinds.<\/p>\n","protected":false},"excerpt":{"rendered":"

On 3rd January 2018 Companies, Amendment Act 2017 received the assent of the President. Since the\u00a0Ministry of Corporate Affairs has notified many sections of the […]<\/p>\n","protected":false},"author":5,"featured_media":2374,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[557],"tags":[227,231,233,134,219,232,230,228,229,234,221],"class_list":["post-2339","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-articles","tag-acceptance-of-deposits","tag-appointment-and-qualification-of-director","tag-audit-and-auditors","tag-companies-act-2013","tag-companies-amendment-act-2018","tag-meetings-of-board-and-its-power","tag-prospectus-and-allotment-of-securities","tag-registration-of-charges","tag-registration-offices-and-fees","tag-share-capital-and-debentures","tag-summary-of-rules"],"yoast_head":"\nCompanies Amendment Act 2017 | Summary of Rules Notified<\/title>\n<meta name=\"description\" content=\"On 3rd January, 2018 Companies Amendment Act 2017 received the assent of the President. MCA has amended many rules.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/companyregistrationonline.in\/blog\/companies-amendment-act-2017-rules-notified\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Companies Amendment Act 2017 | Summary of Rules Notified\" \/>\n<meta property=\"og:description\" content=\"On 3rd January, 2018 Companies Amendment Act 2017 received the assent of the President. 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