Appendix 28
 
TEXT OF NOTIFICATIONS EXEMPTING GOVERNMENT COMPANIES FROM FOLLOWING CERTAIN PROVISIONS OF THE COMPANIES ACT, 1956
 
Exemptions granted to Government Companies
 
In exercise of its powers
under section 620(l) of the Companies Act, 1956, the Government has granted the
following exemptions from the provisions of the Act to the Government Companies
:
 
| 
   S. No.  | 
  
   Section  | 
  
   Nature of Provision  | 
  
   Extent of Exemption granted  | 
  
   Notification No. and date  | 
 
| 
   (1)  | 
  
   (2)  | 
  
   (3)  | 
  
   (4)  | 
  
   (5)  | 
 
| 
   1  | 
  
   13  | 
  
   Requirements with respect to name clause in the
  Memorandum  | 
  
   In clause (a) of sub section (1) the words
  "in the case of public limited company and with Private Limited" as
  the last words of the name in the case of private limited company"
  shall be omitted.  | 
  
   G.S.R. No. 1234 dated 30‑12‑1958  | 
 
| 
   2  | 
  
   16,17,18  | 
  
   Procedure for alteration of Memorandum of
  Association and registration of alteration  | 
  
   For the word "Court" wherein it occurs
  the words "Central Government" shall be substituted.  | 
  
   S.R.O. No.355 dated 7‑1‑1957 as
  amended by G.S.R. No. 1473 dated 1612‑1961.  | 
 
| 
   3.  | 
  
   21  | 
  
   Change of name by company  | 
  
   The following proviso shall he added to the
  section namely provided that nothing in this section shall apply to a
  Government company where the change in its name consists only in the deletion
  of the word 'private' there from'.  | 
  
   GSR No. 1649 dated 13‑11‑1965  | 
 
| 
   4.  | 
  
   23  | 
  
   Registration of change of name and effect thereof.  | 
  
   After sub-section (1) the following sub section
  shall be inserted "(IA) where the change in the name of a government
  company consists only in the deletion of the word 'private' there from that
  government company shall, not later than three months from the date thereof,
  inform the Registrar of the aforesaid change and thereupon the Registrar
  shall delete the word Private' before the word 'Limited' in the name of the
  company upon the register and shall also make the necessary alteration in the
  certificate of incorpotation issued to the company".  | 
  
   G.S.R. No. 1649 dated 13‑11‑1965  | 
 
| 
   5.  | 
  
   43A  | 
  
   Deemed public company   | 
  
   The whole  | 
  
   G.S.R. No. 577(E) dated 16‑7‑1985  | 
 
| 
   6.  | 
  
   100  | 
  
   Reduction of share Capital and procedure therefor.  | 
  
   The word “Court” wherever it occurs shall be
  substituted by the words “Central Government”.  | 
  
   G.S.R. No. 238 dated 2-2-1978  | 
 
| 
   7.  | 
  
   101  | 
  
   Reduction of share Capital and procedure therefor.  | 
  
   The word “Court” wherever it occurs shall be
  substituted by the words “Central Government”.  | 
  
   G.S.R. No. 238 dated 2-2-1978  | 
 
| 
   8.  | 
  
   102  | 
  
   Reduction of share Capital and procedure therefor.  | 
  
   The word “Court” wherever it occurs shall be
  substituted by the words “Central Government”.  | 
  
   G.S.R. No. 238 dated 2-2-1978  | 
 
| 
   9.  | 
  
   103  | 
  
   Registration of order and minute of reduction.  | 
  
   The word “Court” wherever it occurs shall be
  substituted by the words “Central Government”.  | 
  
   G.S.R. No. 238 dated 2-2-1978  | 
 
| 
   10(i).  | 
  
   108  | 
  
   Registration of transfer of shares.  | 
  
   The provisions not to apply in respect of shares
  held by nominees of the Government.  | 
  
   G.S.R. No. 579(E) dated 16-7-1985  | 
 
| 
   10(ii).  | 
  
   108(1)  | 
  
   Requirement as to proper execution & stamping
  of instruments & of transfer in respect of Bonds issued by a Government
  Company.  | 
  
   The provisions not to apply provided an intimation
  by the transferee specifying his name, address and occupation, if any, has
  been delivered to the company along with the certificate is in existence,
  along with the letter of allotment of the Bond.  | 
  
   G.S.R. No. 1294(E) dated 17-12-1984  | 
 
| 
   11.  | 
  
   149(2A)  | 
  
   Restructions on Commencement of Business.  | 
  
   The whole  | 
  
   G.S.R. No. 577(E) dated 16-7-1985  | 
 
| 
   12.  | 
  
   165  | 
  
   Statutory meeting and statutory report of the
  company.  | 
  
   The whole  | 
  
   G.S.R. No. 578(E) dated 16-7-1985  | 
 
| 
   13.  | 
  
   166  | 
  
   Annual General Meeting  | 
  
   (i)         In the proviso to clause (c) of sub‑section
  (1), for the "Registrar"        the
  words "Central Government" shall be substituted.   (ii)        In sub‑section (2) for the words
  "some other place within the city, town or village in which the registered
  office of the company", the words "such other place as the Central
  Government may approve in this behalf” shall be sub-stituted.    | 
  
   S.R.O. No, 355 dated 17‑1‑1957 as
  amended G.S.R. No. 1473 dated 16-2‑1961.  | 
 
| 
   14.  | 
  
   187C  | 
  
   Declaration by persons not holding beneficial interest
  in shares.  | 
  
   The whole  | 
  
   G.S.R No. 232 dated 16-7-1985  | 
 
| 
   15.  | 
  
   187D  | 
  
   Investigation of beneficial ownership of shares in
  certain cases.  | 
  
   The whole  | 
  
   G.S.R No. 578(E) dated 16-7-1985  | 
 
| 
   16.  | 
  
   198  | 
  
   Overall maximum managerial remuneration and
  payment of managerial remuneration in case of absence or in adequacy of
  profit.  | 
  
   The whole  | 
  
   G.S.R No. 235 dated 31-1-1978  | 
 
| 
   17.  | 
  
   205A  | 
  
   Transfer of unpaid dividend to special dividend
  account.  | 
  
   The    whole provided the entire paid up share
  capital is held by the Central Government or State Governments or the Central
  Government and one or more State Government.  | 
  
   G.S.R No. 580(E) dated 16-7-1985  | 
 
| 
   18.  | 
  
   205B  | 
  
   Payment of unpaid or unclaimed dividend  | 
  
   -Do-  | 
  
   G.S.R No. 277(E) dated 16-7-1985  | 
 
| 
   18A  | 
  
   209(3)(b)  | 
  
   Keeping books of accounts on accrual basis and
  double entry system of accountings.  | 
  
   Shall not
  apply to a Government company engaged in the business of financing industrial
  projects and approved by the Central Government under section36(1)(viii) of
  the Income Tax Act, 1961, (43 of 1961) to the extent it relates to income
  from interest on loans and advances provided that such accrued income which
  is not accounted for in the books of accounts, is disclosed by way of note in
  the annual accounts.  | 
  
      | 
 
| 
   18B.  | 
  
   209(3)(b)  | 
  
   -Do-  | 
  
   Shall not
  apply to any Government company engaged in the promotion and development of
  industries, to the extent it relates to income from- (a)        interest
  on seed money loans or bridge loans; (b)        interest on instalments due on the
  cost of industrial plots or sheds allotted to entrepreneurs; (c)        claims from the Central Government or
  State Government in relation to special rebate on the sale of hand loom
  clothes as declared by the Ministry of Textiles (Office of the Development
  Commissioner for Hand looms) from time to time as a special measure for
  boosting the sale of handloom clothes produced in different parts of the
  country:              Provided that such accrued income, which is not
  accounted for in the books of account, is disclosed by way of a note in the
  company's annual accounts.    | 
  
   G.S.R. No. 770(E) dated 10-9-1990  | 
 
| 
   18C.  | 
  
   217(1)(e)  | 
  
   Board’s Report  | 
  
   Shall not
  apply to Hindustan Aeronautics Limited, Bangalore, which is a Government
  Company.  | 
  
   GSR 769, dated 10-9-1990  | 
 
| 
   19.  | 
  
   255  | 
  
   Appointment of directors and proportion of those
  who are to retire by rotation.  | 
  
   The    whole  | 
  
   G.S.R No. 234 dated 31-1-1978  | 
 
| 
   20.  | 
  
   256  | 
  
   Ascertainment of Directors retiring by rotation
  and filling of vacancies.  | 
  
   The     whole  | 
  
   -Do-  | 
 
| 
   21.  | 
  
   257  | 
  
   Right of persons other than retiring directors to
  stand for directorship.  | 
  
   The    whole  | 
  
   G.S.R No. 234 dated 31-1-1988  | 
 
| 
   22.  | 
  
   259  | 
  
   Sanction of Government to increase the number of
  directors.  | 
  
   The    whole  | 
  
   G.S.R No. 235 dated 31-1-1978  | 
 
| 
   23.  | 
  
   263  | 
  
   Appointment of Directors to be voted on
  individually.  | 
  
   Th   e whole  | 
  
   G.S.R No. 577(E) dated 16-7-1985  | 
 
| 
   24.  | 
  
   264  | 
  
   Consent of candidate for directorship to be filed
  with the company and consent to act as director to be filed with the
  Register.  | 
  
   The    whole  | 
  
   G.S.R No. 577(E) dated 16-7-1985  | 
 
| 
   25.  | 
  
   265  | 
  
   Option of company to adopt proportional
  representation for the appointment of Directors.  | 
  
   The    whole  | 
  
   -Do-  | 
 
| 
   26.  | 
  
   268  | 
  
   Approval of Central Government to the amendment of
  provisions relating to whole-time Managing or non-rotational Directors.  | 
  
   The    whole  | 
  
   G.S.R No. 235 dated 31-1-1978  | 
 
| 
   27.  | 
  
   269  | 
  
   Approval of Central Government to appointment or
  re‑appointment of managing or whole‑time Directors.  | 
  
   The    whole  | 
  
   -Do-  | 
 
| 
   28.  | 
  
   294  | 
  
   Approval of the company in Annual General Meeting
  to the appointment of sole selling agent.  | 
  
   The     whole  | 
  
   G.S.R No. 577(E) dated 16-7-1985  | 
 
| 
   29.  | 
  
   294AA(2) & (3)  | 
  
   Approval of Central Government to the appointment
  of Sole Selling Agents in certain cases.  | 
  
   The     whole  | 
  
   -Do-  | 
 
| 
   30.  | 
  
   295  | 
  
   Loans to Directors.  | 
  
   Th e whole of
  the section shall not apply provided the company obtains the approval of the
  administrative Ministry/ Department concerned or, as the case may be, of the
  State Government.  | 
  
   G.S.R No. 581(E) dated 16-7-1985  | 
 
| 
   31.  | 
  
   297(1) Proviso  | 
  
   Approval of Central Government in respect of
  certain contracts in which directors are interested.  | 
  
   The      whole  | 
  
   G.S.R No. 233 dated 31-1-1978  | 
 
| 
   32.  | 
  
   307  | 
  
   Maintenance of Register of Directors’
  shareholding.  | 
  
   The    whole  | 
  
   G.S.R No. 577(E) dated 16-7-1985  | 
 
| 
   33.  | 
  
   308  | 
  
   Duty of directors and persons deemed to be
  dirctors to make disclosure of shareholding.  | 
  
   The     whole  | 
  
   -Do-  | 
 
| 
   34.  | 
  
   309  | 
  
   Remuneration of Directors.  | 
  
   The    whole  | 
  
   G.S.R No. 235 dated 31-1-1978  | 
 
| 
   35.  | 
  
   310  | 
  
   Approval of Central Government for increase in
  remuneration of Managing or whole-time Directors.  | 
  
   The    whole  | 
  
   G.S.R No. 235 dated 31-1-1978  | 
 
| 
   36.  | 
  
   311  | 
  
   Approval of Central Government for increase in remuneration
  of managing director on re-appointment or appointment.  | 
  
   The    whole  | 
  
   G.S.R No. 235 dated 31-1-1978  | 
 
| 
   37.  | 
  
   315  | 
  
   Number of companies of which a person may be
  appointed as Managing Director.  | 
  
   The    whole  | 
  
   G.S.R No. 577(E) dated 16-7-1985  | 
 
| 
   38.  | 
  
   317  | 
  
   Appointment of managing Dirctor not be made for
  more than 5 years at a time.  | 
  
   The    whole  | 
  
   G.S.R No. 577(E) dated 16-7-1985  | 
 
| 
   39.  | 
  
   370  | 
  
   Inter-Corporate loans, guarantees, securities etc.  | 
  
   The    whole, provided:   (i)         the entire paid-up share capital is
  held by Central is held by Central Govt. and its nominees or State Government
  and its nominees; and (ii)        Approval of Central Government or as
  the case may be, of State Government is obtained before making a loan or
  giving any guarantee or providing any security.    | 
  
   G.S.R No. 309 dated 20-2-1978  | 
 
| 
   40.  | 
  
   372  | 
  
   Inter-Corporate Investments.  | 
  
   Not t     apply to any company established with
  the object of financing where the State Government has made or agreed to
  make a special advance for the purpose of making loans or advances to, or
  subscribing to the capital of private companies/enterprises in India.  | 
  
   G.S.R No. 990 dated 9-8-1975  | 
 
| 
   41.  | 
  
   386  | 
  
   Number of companies of which a person may be
  appointed as Manager.  | 
  
   The      whole  | 
  
   G.S.R No. 577(E) dated 16-7-1985  | 
 
| 
   42.  | 
  
   387  | 
  
   Remuneration of Manager.  | 
  
   The      whole  | 
  
   G.S.R No. 235 dated 31-1-1978  | 
 
| 
   43.  | 
  
   388  | 
  
   Application of sections 269,310,311,312 and 317 to
  Managers.  | 
  
   The     whole  | 
  
   -Do-  | 
 
| 
   44.  | 
  
   391  | 
  
   Appeal against Order of the Court exercising
  jurisdiction under the section.  | 
  
   Su       sub-section (7) not to apply  | 
  
   G.S.R No. 238 dated 2-2-1978  | 
 
| 
   45.  | 
  
   392(1)  | 
  
   Powers of High Court to enforce compromises and
  arrangements.  | 
  
   For   the words “High Court” the words “Central
  Government” shall be substituted.  | 
  
   G.S.R No. 238 dated 2-2-1978  | 
 
| 
   46.  | 
  
   394  | 
  
   Reconstruction or amalgamations of companies.  | 
  
   For the words
  “High Court” the words “Central Government” shall be substituted.  | 
  
   G.S.R No. 238 dated 2-2-1978  | 
 
| 
   47.  | 
  
   621  | 
  
   Offences against Act to be cognisable only on
  complaint by Registrar, Shareholder or Government.  | 
  
   In
  sub-section (1) the words “The Registrar or of Share-holder of the company”
  shall be omitted.  | 
  
   S.R.O. No. 355 dated 7-1-1957 as amended by G.S.R.
  No. 1473 dated 16-12-1961.  | 
 
 
Notifications of Exemptions
to Govt. Companies  § App. 28 1767
1768 § App. 28 Notifications of Exemptions to Govt. Companies
1770 § App. 28 Notifications of Exemptions to Govt. Companies
1772 § App. 28 Notifications of Exemptions to Govt. Companies