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Commencement Notification CA2013 :: Notified Sections 19,20,21

Commencement Notification Of Companies Act 2013 :: 98 Sections Notified

Chapter II -Incorporation of Company and Matters Incidental Thereto (Sections 3 – 22)

Notified Section 19- Subsidiary company not to hold shares in its holding company

(1) No company shall, either by itself or through its nominees, hold any shares in its holding company and no holding company shall allot or transfer its shares to any of its subsidiary companies and any such allotment or transfer of shares of a company to its subsidiary company shall be void:

Provided that nothing in this sub-section shall apply to a case”

(a) where the subsidiary company holds such shares as the legal representative of a deceased member of the holding company; or

(b) where the subsidiary company holds such shares as a trustee; or

(c) where the subsidiary company is a shareholder even before it became a subsidiary company of the holding company:

Provided further that the subsidiary company referred to in the preceding proviso shall have a right to vote at a meeting of the holding company only in respect of the shares held by it as a legal representative or as a trustee, as referred to in Section (a) or Section (b) of the said proviso.

(2) The reference in this section to the shares of a holding company which is a company limited by guarantee or an unlimited company, not having a share capital, shall be construed as a reference to the interest of its members, whatever be the form of interest

Notified Section 21- Authentication of documents, proceedings and contracts.

Save as otherwise provided in this Act,”(a) a document or proceeding requiring authentication by a company, or(b) contracts made by or on behalf of a company, may be signed by any key managerial personnel or an officer of the company duly authorised by the Board in this behalf.

Notified Section 22- Execution of Acts of exchange, etc.

(1) A Act of exchange, hundi or promissory note shall be deemed to have been made, accepted, drawn or endorsed on behalf of a company if made, accepted, drawn, or endorsed in the name of, or on behalf of or on account of, the company by any person acting under its authority, express or implied.(2) A company may, by writing under its common seal, authorise any person, either generally or in respect of any specified matters, as its attorney to execute other deeds on its behalf in any place either in or outside India.(3) A deed signed by such an attorney on behalf of the company and under his seal shall bind the company and have the effect as if it were made under its common seal.

Tags: BoardBusinessCompanies ActCorporate lawHolding companyIndiaNotification Of Companies Act 2013Subsidiary

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