<\/strong><\/p>\n

And whereas, clause <\/strong>(85) of section 2 of the said Act provides for <\/strong>definition of the term
\n“small company”;<\/strong><\/strong><\/p>\n

And whereas, clause (b) of
\nsub-section <\/strong>(11) of
\nsection 186 of the said Act provides
\nthat the requirements of provisions of section 186 <\/strong>[except
\nsub-section (1) of the <\/strong>said
\nsection] shall <\/strong>not apply to any acquisition made by a non-banking financial
\ncompany registered under Chapter IIIB of the Reserve Bank of India
\nAct, 1934 <\/strong>(2 of 1934)
\nand any other company whose principal business is
\nacquisition of securities;<\/strong><\/p>\n

And whereas, such provisions of clause (85) of section 2 and section <\/strong>186 of the
\n<\/strong>said Act had come into force on the
\n1st day of April, <\/strong>2014;<\/strong><\/p>\n

And whereas, the following difficulties have
\narisen in giving <\/strong>effect to the above provisions of the said Act: –<\/strong><\/p>\n

(a) According to clause (85) of
\nsection 2, <\/strong>a company may be treated as a ‘small company’ if it meets either of the conditions
\nprovided therein thereby making the <\/strong>second limit unrestricted or <\/strong>inconsequential. Difficulties
\nhave arisen in this regard as companies <\/strong>which, though, <\/strong>meet one of the criteria but exceed the
\nmonetary limit <\/strong>in <\/strong>respect of second criteria excessively are
\nalso getting classified as `small
\ncompanies’ and<\/p>\n

(b) in
\nclause (b) of sub-section (11) of section 186, in the absence of provisions for
\nexemption to a banking company or an insurance company or a housing finance
\ncompany making acquisition of securities in its ordinary course of business, a
\ndifficulty has arisen that such companies cannot make any acquisition of
\nsecurities in their ordinary course of business; <\/o:p><\/p>\n

Now,
\ntherefore, in exercise of the powers conferred by sub-section (1) of section
\n470 of the Companies Act, 2013 (18 of 2013), the Central Government hereby
\nmakes the following Order to remove the aforesaid difficulties, namely:- <\/p>\n

(1) Short
\ntitle and commencement.- (1) This Order may be called the Companies (Removal of
\nDifficulties) Order, 2015. <\/p>\n

(2) It shall
\ncome into force on the date of its publication in the Official Gazette. <\/p>\n

2. In the
\nCompanies Act, 2013 (hereinafter referred to as the said Act), – <\/p>\n

(a) in
\nsection 2, in clause (85), in sub-clause (i), for the word “or”
\noccurring at the end, the word “and” shall be substituted; and <\/p>\n

(b) in
\nsection 186 of the said Act, in sub-section (11), in clause (b), after item
\n(iii), the following item shall be inserted, namely :- <\/p>\n

“(iv)
\nmade by a banking company or an insurance company or a housing finance company,
\nmaking acquisition of securities in the ordinary course of its business.”.\n<\/p>\n

[F. No. 1\/
\n13 \/2013-CI-V-Part] <\/p>\n

SD\/-<\/p>\n

AMARDEEP SINGH BHATIA, JOIN SE RETARY<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

GOVERNMENT OF INDIA ORDER And whereas, clause (85) of section 2 of the said Act provides for definition of the term “small company”; And whereas, such provisions of clause (85) of section 2 and section 186 of the said Act had come into force on the 1st day of April, 2014; (a) According to clause … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6],"tags":[129],"class_list":["post-1409","post","type-post","status-publish","format-standard","hentry","category-company-law","tag-order"],"yoast_head":"\n