Appendix 23

 

PROVISIONS WHICH DO NOT APPLY TO NIDHI OR MUTUAL BENEFIT SOCIETY: MODIFICATION OF ACT IN ITS APPLICATION TO NIDHIS AND MUTUAL BENEFIT SOCIETIES

 

See Notifications G.S.R. 978, dated 28th May, 1963; 1681, dated 11th October, 1963; 853, dated 4th June, 1964; 297, dated 12th February, 1965; 1333, dated 30th August, 1965; 111, dated 14th January, 1966 and 1544, dated 1st October, 1966, 1523 No. 37/3/75 CL.

 

 

Provision of Act

Extent of Application

Section 53(1)

__ Shall apply subject to the modification that in the case of­

 

(i) a Nidhi or Mutual Benefit Society without a share capital; or

 

(ii) a Nidhi or Mutual Benefit Society with a share capital, as regards those members who do not hold shares of one hundred rupees or more in face value of more than one per cent of the paid‑up capital, whichever is less.

 

The document may be served by publication in the notice board of the Nidhi or Mutual Benefit Society, as the case may be, and at least in, two local newspapers of wide circulation in the area in which the Nidhi, or, as the case may be, the Mutual Benefit Society is situated, once in English in an English newspaper and once in a local language in a newspaper of that language.

Section 81

__ Shall not apply.

Section 87 (1) (b)

__ Shall apply subject to the modification that no member shall exercise voting rights in excess of five per cent of the total voting rights 4 the equity shareholders.

Section 159(1)

__ Shall apply subject to the modification that for the words "two immedi­ately preceding years" in the proviso, the words "five immediately preceding years" shall be substituted.

Section 160(1) (a)

Shall not apply to a Mutual Benefit Society specified in Schedule II only.

Section 205(5) (b)

Shall apply subject to the modification that any dividend payable in cash may also be paid by crediting the same to the account of the mem­ber, if the dividend is not claimed within forty‑two days of the an­nouncement of the dividend.

Sections 205‑A& 205‑B

Shall not apply. (G.S.R. 1523, No. 37/3/75 CL.)

Section 207

Shall apply subject to the modification that where the dividend payable to a member is twenty‑five rupees or less, it shall be sufficient com­pliance of the provisions of the section if the declaration of dividend, is announced, in two local newspapers of wide circulation once in English in an English newspaper and once in the local language in a            newspaper of that language and announcement of the said declaration is also displayed in the notice board of the Nidhi or Mutual Benefit Society (or at least three months).

Section 219(1)

Shall apply subject to the modification that in the case of­

(i)         a Nidhi or Mutual Benefit Society without a share capital;or

(ii)        Nidhi or Mutual Benefit Society with a share capital so far as the members who do not individually or jointly hold shares of one hun­dred rupees or more in face value or more than one per cent of the total paid‑up capital, whichever is less are concerned.

It shall be sufficient compliance with the provisions of the section if the audited accounts together with the auditors' and directors' report are exhibited on the Notice Board of the Nidhi or Mutual Benefit Society, as the case may be, and are also published in two local newspapers of wide circulation in the area where the Nidhi, or as the case may be, the Mutual Benefit Society is situated once in English newspaper and once in the local language in a newspaper of that language.

Section 271 read with section 611

Shall apply with the modification that the declaration shall be filed within five months after the appointment, and the additional fee in case it is not so filed shall not exceed the amount of the filing fee payable.

Section 295

Shall apply only where the loan is­

(a) two thousand rupees or more, or

(b) more than 25 per cent of the value of the security.

Section 309(4)

Shall apply with the modification that the remuneration of a director who is neither in the whole‑time employment of the Nidhi or Mutual Benefit Society nor a managing director, for performing special services to the Nidhi or Mutual Benefit Society specified in the Arti­cles of Association may also be by way of monthly payment subject to the approval of the Central Government and also to the provisions of section 198.

Schedule X

Shall apply with the modification that the filing fee in respect of every return of allotment under section 75 shall be calculated at the rate of one rupee for every one hundred rupees or part thereof in face value of the shares included in the return.