MCA vide notification dated 28th August has amended the Companies (Management & Administration) Rules 2014.
The details of the amendment is outlined below:
Relevant text of existing rule 23 is reproduced below
“23. Special Notice.-
(1) A special notice required to be given to the company shall be signed, either individually or collectively by such number of members holding not less than one percent of total voting power or holding shares on which an aggregate sum of not more than five lakh rupees has been paid up on the date of the notice.
It is important to note the following points in connection with the aforesaid amendment:
- In rule 23, for the words ‘not more than five lakhs’, the words ‘not less than five lakhs’ shall be substituted.
- Earlier MCA by notification dated 24th April 2014 has substituted the words ‘not less than five lakhs’ by ‘not more than five lakhs’. Now it has again reversed the position.
- Rule 23 is prescribed under section 115 , which provides that in case special notice is required for any matter , then such special notice shall be given by shareholders holding not less than one per cent of the total voting power or holding shares on which such aggregate sum not exceeding five lakhs rupees as may be prescribed has been paid. Though there seems to be a mistake in section itself which instead of providing five lakhs rupees as a minimum limit has provided it as maximum limit. The rule seems to rectify the aforesaid mistake but in that would contradict the position provided in the section itself.
- MGT-7 i.e. the form for annual return has been substituted with a new form. The eform for MGT-7 is still not available.