Order proposed to be issued
under Section 470 of the Companies Act, 2013
ORDER
[F. No.
1/15/2013-CL.V]
S.O. _____ (E) Whereas the Companies Act, 2013 (18 of 2013)
(hereinafter referred to as the said Act) received the assent of the President
on 29th August, 2013 and section 1 thereof came into force on the same date;
And whereas clause (76) of Section
2 of the Act defines the term `related party’ has commenced on 12th September,
2013.
And whereas in sub-clause (v) of
clause (76) provides for that a public company in which a director or manager
is a director or holds along with his relatives, more than two per cent of its paid
up share capital shall be related party.
And whereas difficulties have
arisen regarding compliance with the provision.
Now, therefore, in exercise of the
powers conferred by sub-section (1) of Section 470 of the Companies Act, 2013
(18 of 2013), the Central Government hereby makes the following Order to remove
the above said difficulties, namely:-
1. Short title and commencement.-
(1) This Order may be called the
Companies 1st (Removal of Difficulties) Order, 2014.
(2) It shall come into force on the
date of its publication in the Official Gazette.
2. It is hereby clarified that a public company in which a director
or manager is a director and holds along with his relatives, more than two per
cent of its paid up share capital shall be related party.
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