Companies (Meetings of Board and its Powers) Amendment Rules, 2017

Ministry of Corporate Affairs vide its Notifications No. G.S.R. 309(E) dated 30th March, 2017 has made the following amendment in Companies (Meetings of Board and its Powers) Rules, 2014

In the Companies (Meetings of Board and its Powers) Rules, 2014, in rule 15, in sub-rule (3), in clause (a)—

(a) in item (i), item (ii), item (iii) and item (iv), for the words “exceeding ten per cent.” wherever they occur, the words “amounting to ten per cent. or more” shall be substituted; and

(b) in item (iii), for the words “ten per cent. of turnover” the words “ten per cent. or more of turnover” shall be substituted.

The amended Clause (a) of sub-rule (3) of Rule 15 shall read as follows:-

For the purposes of first proviso to sub-section (1) of section 188, except with the prior approval of the company by a resolution, a company shall not enter into a transaction or transactions, where the transaction or transactions to be entered into,-

(a) as contracts or arrangements with respect to clauses (a) to (e) of sub-section (1) of section  188, with criteria as mention below-

(i) sale, purchase or supply of any goods or material, directly or through appointment of agent, amounting to ten percent. Or more of the turnover of the company or rupees one hundred crore, whichever is lower, as mentioned in clause (a) and clause (e) respectively of sub-section (1) of section 188;

(ii) selling or otherwise disposing of or buying property of any kind, directly or through appointment of agent, amounting to ten percent. Or more of net worth of the company or rupees one hundred crore, whichever is lower, as mentioned in clause (b) and clause (e) respectively of sub-section (1) of section 188;

(iii) leasing of property any kind amounting to ten percent. Or more of the turnover of the company or rupees one hundred crore, whichever is lower, as mentioned in clause (c) of sub-section (1) of section 188;

(iv) availing or rendering of any services, directly or through appointment of agent, amounting to ten percent. Or more of the turnover of the company or rupees fifity crore, whichever is lower as mentioned in clause (d) and clause (e) respectively of sub-section (1) of section 188

Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number G.S.R. 240(E), dated the 31st March, 2014 and was subsequently amended vide notifications as detailed below:—

1. Notification Number G.S.R. 398(E) dated 12th June, 2014

2. Notification Number G.S.R. 590(E) dated 14th August, 2014

3. Notification Number G.S.R. 206(E) dated 18th March, 2015

4. Notification Number G.S.R. 971(E) dated 14th December, 2015

Click here to view the Notification No. G.S.R. (309)(E) dated 30-03-2017

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