SECTION 395. ANNUAL REPORTS WHERE ONE OR MORE
STATE GOVERNMENTS ARE MEMBERS OF COMPANIES
[Effective from 1st April, 2014]
(1) Where the Central Government is not a member of a Government company, every State Government which is a member of that company, or where only one State Government is a member of the company, that State Government shall cause an annual report on the working and affairs of the company to be—
(a) prepared within the time specified in sub-section (1) of section 394; and
(b) as soon as may be after such preparation, laid before the House or both Houses of the State Legislature together with a copy of the audit report and comments upon or supplement to the audit report referred to in sub-section (1) of that section.
(2) The provisions of this section and section 394 shall, so far as may be, apply to a Government company in liquidation as they apply to any other Government company.
Exemption from certain provisions of the Companies Act, 2013
to Government Companies
Notification No. G.S.R. 463(E), dated 5-6-2015
In exercise of the powers conferred by clauses (a) and (b) of sub-section ( 1) of section 462 and in pursuance of sub-section (2) of said section of the Companies Act.20l3 (18 of 2013) and in supersession of notifications issued under section 620 of the Companies Act, 1956 (1 of 1956), except as respects things done or omitted to be done before such supersession, the Central Government, in the interest of public, hereby directs that certain provisions of the Companies Act, 2013, as specified in column (2) of the Table, shall not apply or shall apply with such exceptions, modifications and adaptations, as specified in column (3) of the said Table, to a Government company, namely:-
| Sl. No. | Chapter Number/Section number/Sub-section(s) in the Companies Act, 2013 | Exceptions, Modifications and Adaptations |
| (1) | (2) | (3) |
| 1. | Chapter II, section 4 | In section 4, in sub-section (l), in clause (a), the words ‘in the case of a public limited company, or the last words “Private Limited” in the case of a private limited company’ shall be omitted. |
| 2. | Chapter IV, section 56 | In sub-section (l), after the proviso, the following provisos shall be inserted, namely:-
Provided further that the provisions of this sub-section, in so far as it requires a proper instrument of transfer, to be duly stamped and executed by or on behalf of the transferor and by or on behalf of the transferee, shall not apply with respect to bonds issued by a Government company, provided that an intimation by the transferee specifying his name, address and occupation, if any, has been delivered to the company along with the certificate relating to the bond; and if no such certificate is in existence, along with the letter of allotment of the bond: Provided also that the provisions of this sub-section shall not apply to a Government Company in respect of securities held by nominees of the Government. |
| 3. | Chapter VII, section 89. | Shall not apply. |
| 4. | Chapter VII, section 90. | Shall not apply. |
| 5. | Chapter VII, sub-section (2) of section 96. | In sub-section (2), for the words “some other place within the city, town or village in which the registered office of the company is situate”, the words “such other place as the Central Government may approve in this behalf” shall be substituted. |
| 6. | Chapter VIII, second proviso to sub-section (1) of section 123. | Shall not apply to a Government Company in which the entire paid up share capital is held by the Central Government, or by any State Government or Governments or by the Central Government and one or more State Governments. |
| 7. | Chapter VIII, sub-section (4) of section 123. | Shall not apply to a Government Company in which the entire paid up share capital is held by the Central Government, or by any State Government or Governments or by the Central Government and one or more State Governments or by one or more Government Company. |
| 8. | Chapter IX, section 129. | Shall not apply to the extent of application of Accounting Standard 17 (Segment Reporting) to the companies engaged in defence production. |
| 9. | Chapter IX, clause (e) of sub-section (3) of section 134. | Shall not apply. |
| 10. | Chapter IX. clause (p) of sub-section (3) of section 134. | Shall not apply in case the directors are evaluated by the Ministry or Department of the Central Government which is administratively in charge of the company, or, as the case may be, the State Government, as per its own evaluation methodology. |
| 11. | Chapter XI, section 149(l)(b) and first proviso to sub-section (l) of section 149. | Shall not apply. |
| 12. | Chapter XI, clause (a) of sub-section (6) of section 149. | In section 149, in sub-section (6), in clause (a), for the word “Board”, the words “Ministry or Department of the Central Government which is administratively in charge of the company, or, as the case may be, the State Government” shall be substituted. |
| 13. | Chapter XI, clause (c) of sub-section (6) of section 149. | Shall not apply. |
| 14. | Chapter XI, sub-section (5) of section 152. | Shall not apply where appointment of such director is done by the Central Government or State Government, as the case may be. |
| 15. | Chapter XI, sub-sections (6) and (7) of section 152. | Shall not apply to –
(a) a Government Company in which the entire paid up share capital is held by the Central Government, or by any Stale Government or Governments or by the Central Government and one or more State Governments; (b) a subsidiary of a Government company, referred to in (a) above, in which the entire paid up share capital is held by that Government company. |
| 16. | Chapter XI, section 160 | Shall not apply to –
(a) a Government Company in which the entire paid up share capital is held by the Central Government, or by any Stale Government or Governments or by the Central Government and one or more State Governments; (b) a subsidiary of a Government company, referred to in (a) above, in which the entire paid up share capital is held by that Government company. |
| 17. | Chapter XI, section 162 | Shall not apply to –
(a) a Government Company in which the entire paid up share capital is held by the Central Government, or by any Stale Government or Governments or by the Central Government and one or more State Governments; (b) a subsidiary of a Government company, referred to in (a) above, in which the entire paid up share capital is held by that Government company. |
| 18. | Chapter XI, section 163 | Shall not apply to –
(a) a Government Company in which the entire paid up share capital is held by the Central Government, or by any Stale Government or Governments or by the Central Government and one or more State Governments; (b) a subsidiary of a Government company, referred to in (a) above, in which the entire paid up share capital is held by that Government company. |
| 19. | Chapter XI, sub-section (2) of section 164 | Shall not apply. |
| 20. | Chapter XI, section 170 | Shall not apply to a Government Company in which the entire share capital is held by the Central Government, or by any State Government or Governments or by the Central Government or by one or more State Governments. |
| 21. | Chapter XI, section 171 | Shall not apply to a Government Company in which the entire share capital is held by the Central Government, or by any State Government or Governments or by the Central Government or by one or more State Governments. |
| 22. | Chapter XII, clause (i) of sub-section (4) of section 177. | In clause (i) of sub-section (4) of the section 177, for the words “recommendation for appointment, remuneration and terms of appointment” the words “recommendation for remuneration” shall be substituted. |
| 23. | Chapter XII, sub-sections (2), (3) and (4) of section 178. | Shall not apply to Government company except with regard to appointment of ‘senior management’ and other employees. |
| 24. | Chapter XII, section 185. | Shall not apply to Government company in case such company obtains approval of the Ministry or Department of the Central Government which is administratively in charge of the company, or, as the case may be, the State Government before making any loan or giving any guarantee or providing any security under the section. |
| 25. | Chapter XI, section 186. | Shall not apply to –
(a) a Government Company engaged in defence production; (b) a Government company, other than a listed company, in case such company obtains approval of the Ministry or Department of the Government which is administratively in charge of the company, or, as the case may be, the State Government before making any loan or giving any guarantee or providing any security or making any investment under the section. |
| 26. | Chapter XII, first and second proviso to sub-section (1) of section 188. | Shall not apply to –
(a) a Government Company in respect of contracts or arrangements entered into by it with any other Government company; (b) a Government company, other than a listed company, in respect of contracts or arrangements other than those referred to in clause (a), in case such company obtains approval of the Ministry of Department of the Central Government which is administratively in charge of the company, or, as the case may be, the State Government before entering into such contract or arrangement. |
| 27. | Chapter XIII, sub-sections (2), (4) and (5) of section 196. | Shall not apply. |
| 28. | Chapter XIII, section 197. | Shall not apply. |
| 29.
|
Chapter XIII, sub-sections (1), (2), (3) and (4) of section 203.
|
After sub-section (4), the following sub-section shall be inserted, namely:—
“(4A) The provisions of sub-sections (1), (2), (3) and (4) of this section shall not apply to a managing director or Chief Executive Officer or manager and in their absence, a whole-time director of the Government Company.” |
| 30. | Chapter XXIX, sub-section (2) of section 439. | In sub-section (2), the words “the Registrar, a shareholder of the company, or of” shall be omitted. |
The Government companies, while complying with such exceptions, modifications and adaptations, as specified in column (3) of the aforesaid Table, shall ensure that the interests of their shareholders are protected.
Further exemption given to Government Companies under
Schedule III of the Companies Act, 2013
Notification No. S.O. 2437(E) dated 4-9-2015
In exercise of the powers conferred by sub-section (6) of section 129 of the Companies Act, 2013, the Central Government hereby, in public interest, directs that paras 5 (ii) (a) (1), 5 (ii) (a) (2), 5(ii) (e), 5 (iii), 5 (viii) (a), 5 (viii) (b), 5 (viii) (c) and 5 (viii) (e) relating to Additional Information of the General Instructions for preparation of Statement of Profit and Loss in Schedule III of the Companies Act, 2013 shall not apply to government companies producing Defence Equipment including the Space Research subject to fulfilment of following conditions, namely:—
Conditions:
A. The Board of Directors of the Company has given consent with regard to non-disclosure of information relating to paras 5(ii)(a)(1), 5(ii)(a)(2), 5(ii)(e), 5(iii), 5(viii)(a), 5(viii)(b), 5(viii)(c) and 5(viii)(e), as may be applicable;
B. The Company shall disclose in the Notes forming part of the balance sheet and profit and loss account, the fact of grant of exemption under this notification;
C. The company shall comply with the prescribed Accounting Standards;
D. The company shall ensure that its financial statements represent a true and fair state of affairs of its finances; and
E. The company shall maintain and file such information as may be prescribed or called for or required by the government or the Reserve Bank of India or any other regulator.
This notification shall be applicable in respect of financial statement prepared in respect of the financial years ending on or after the 31st March, 2016.
Hi corporatelawreporter.com owner, Thanks for the informative and well-written post!
Excellent blog you have got here.. It’s difficult to find high quality writing like yours nowadays.
I really appreciate people like you! Take care!!
I feel that is among the most vital info for me. And i am happy reading your article.
However want to statement on some common issues, The site taste is wonderful, the articles is really
great : D. Good job, cheers
When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get three e-mails with the same comment.
Is there any way you can remove people from that service?
Many thanks!
I quite like reading through a post that will make people think. Also, thank you for allowing for me to comment!
Howdy! This post couldn’t be written any better! Reading this post reminds me of my old room mate!
He always kept chatting about this. I will forward this post
to him. Pretty sure he will have a good read.
Thank you for sharing!
You’re so awesome! I don’t think I’ve truly read a single thing like that before.
So great to discover someone with some unique thoughts
on this subject matter. Really.. many thanks for starting
this up. This website is something that’s needed on the internet, someone with a little originality!
Hi there to all, how is all, I think every one is getting more from this web site,
and your views are pleasant designed for new visitors.
Wonderful blog you have here but I was wanting
to know if you knew of any forums that cover the same topics talked about here?
I’d really like to be a part of group where I can get opinions from
other experienced people that share the same interest.
If you have any suggestions, please let me know. Kudos!
I really like it when folks come together and share views.
Great blog, continue the good work!
Wow, that’s what I was seeking for, what a data! present here at this
web site, thanks admin of this web page.
I am really impressed with your writing abilities as neatly as with the layout
on your weblog. Is this a paid theme or did you modify it your self?
Either way keep up the nice quality writing, it is rare to see a nice weblog like this one these days..
Right here is the right site for everyone who wants to understand this topic.
You understand a whole lot its almost tough to argue with you (not that
I actually will need to…HaHa). You definitely put a fresh spin on a topic that has been discussed
for decades. Wonderful stuff, just great!
Great goods from you, man. I have understand your stuff previous to and you’re just extremely great.
I actually like what you’ve acquired here, really like what you are saying and the way in which you say it.
You make it entertaining and you still take care
of to keep it sensible. I can not wait to read far more from you.
This is really a wonderful website.
I have read so many posts concerning the blogger lovers except this paragraph is genuinely a fastidious article, keep it up.
There’s definately a great deal to learn about this topic.
I really like all the points you’ve made.
Hey there! This is kind of off topic but I need some guidance
from an established blog. Is it tough to set up your own blog?
I’m not very techincal but I can figure things out pretty fast.
I’m thinking about making my own but I’m not sure where to start.
Do you have any tips or suggestions? With thanks
I’m curious to find out what blog system you happen to be working with?
I’m having some minor security problems with my latest site and I would
like to find something more secure. Do you have any solutions?
I blog frequently and I seriously appreciate your information. Your article
has really peaked my interest. I’m going to book mark your site and
keep checking for new details about once per week.
I opted in for your RSS feed too.
This is really interesting, You’re a very skilled blogger.
I’ve joined your rss feed and look forward to seeking more of your magnificent post.
Also, I have shared your web site in my social networks!
wonderful issues altogether, you simply received a brand new reader.
What might you recommend about your publish that you
made a few days ago? Any certain?
What’s up colleagues, pleasant post and pleasant urging commented here, I am in fact enjoying by these.
What i do not realize is in fact how you are now not really much
more well-preferred than you may be right now. You are very intelligent.
You realize thus considerably when it comes to this subject, produced
me in my opinion believe it from so many varied angles.
Its like men and women are not interested until it is one thing to accomplish with Girl gaga!
Your own stuffs excellent. At all times maintain it up!
Keep on writing, great job!
This is really interesting, You are a very skilled
blogger. I have joined your feed and look forward to seeking more of your
wonderful post. Also, I have shared your web site in my social
networks!
Generally I do not learn post on blogs, but I would like to say that this write-up very pressured me to try and do
it! Your writing style has been surprised me. Thank you, quite great post.
Hiya! I know this is kinda off topic however , I’d figured
I’d ask. Would you be interested in exchanging links or maybe guest writing a blog article or vice-versa?
My blog addresses a lot of the same subjects as yours and I
believe we could greatly benefit from each other.
If you happen to be interested feel free to shoot me an e-mail.
I look forward to hearing from you! Great blog by the way!
Great blog! Do you have any recommendations for aspiring writers?
I’m hoping to start my own website soon but I’m a little lost on everything.
Would you propose starting with a free platform like WordPress or go for a paid option? There are so many choices out there that I’m totally
overwhelmed .. Any suggestions? Thanks!
Hi there, just became alert to your blog through Google, and found that
it is truly informative. I’m going to watch out for brussels.
I will appreciate if you continue this in future. Lots
of people will be benefited from your writing.
Cheers!
Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my
blog that automatically tweet my newest twitter updates.
I’ve been looking for a plug-in like this for quite some
time and was hoping maybe you would have some experience
with something like this. Please let me know if you run into anything.
I truly enjoy reading your blog and I look forward to your new updates.