Are nationalised banks companies?
This query is : Resolved
15 October 2009
If yes then why the word LIMITED is not the ending word of the name of the same?
18 October 2009
As per section 25 of the companies act the company can apply for to central govt for dispensing with limited in the name of the company.
If they could get the approval then limited can be dispensed with.
If they could get the approval then limited can be dispensed with.
20 October 2009
thanks but ur answer is not to the point..............
01 November 2009
can any expert provide full detail regarding the qwery with provisions of companies act, 1956...........?
14 July 2024
Under the Companies Act, 1956 (which has since been replaced by the Companies Act, 2013), the term "company" is defined broadly to include any association of persons registered under the Act. This includes companies formed and registered under the Act, whether they are private companies, public companies, government companies, or deemed public companies.
### Nationalised Banks:
Nationalised banks in India are typically government companies. Government companies are defined under Section 617 of the Companies Act, 1956 (now Section 2(45) of the Companies Act, 2013) as companies in which not less than 51% of the paid-up share capital is held by:
- The Central Government,
- One or more State Governments,
- Both, or
- Any other government(s).
### Why "Limited" is not used in their names:
- According to the Companies Act, companies registered under it must use the word "Limited" or "Ltd." at the end of their names, except in certain cases where specific exemptions are provided.
- However, nationalised banks in India are exempt from using the word "Limited" in their names. This exemption is provided under Section 8 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and Section 7 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
- These Acts were enacted when nationalisation of banks occurred in India, and they specifically provide that the banks transferred to the Central Government do not need to add the word "Limited" to their names.
### Legal Basis:
- **Banking Companies (Acquisition and Transfer of Undertakings) Acts**: These Acts were passed to provide for the acquisition and transfer of the undertakings of certain banking companies to ensure better control and regulation by the Central Government. As part of these Acts, the requirement to use the word "Limited" was waived for these nationalised banks.
### Conclusion:
Nationalised banks in India are considered government companies under the Companies Act, 1956 (and Companies Act, 2013). They are exempted from using the word "Limited" in their names due to specific provisions in the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980. This exemption allows them to operate without the "Limited" suffix while still complying with the broader regulatory framework applicable to companies under the Companies Act.
### Nationalised Banks:
Nationalised banks in India are typically government companies. Government companies are defined under Section 617 of the Companies Act, 1956 (now Section 2(45) of the Companies Act, 2013) as companies in which not less than 51% of the paid-up share capital is held by:
- The Central Government,
- One or more State Governments,
- Both, or
- Any other government(s).
### Why "Limited" is not used in their names:
- According to the Companies Act, companies registered under it must use the word "Limited" or "Ltd." at the end of their names, except in certain cases where specific exemptions are provided.
- However, nationalised banks in India are exempt from using the word "Limited" in their names. This exemption is provided under Section 8 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and Section 7 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
- These Acts were enacted when nationalisation of banks occurred in India, and they specifically provide that the banks transferred to the Central Government do not need to add the word "Limited" to their names.
### Legal Basis:
- **Banking Companies (Acquisition and Transfer of Undertakings) Acts**: These Acts were passed to provide for the acquisition and transfer of the undertakings of certain banking companies to ensure better control and regulation by the Central Government. As part of these Acts, the requirement to use the word "Limited" was waived for these nationalised banks.
### Conclusion:
Nationalised banks in India are considered government companies under the Companies Act, 1956 (and Companies Act, 2013). They are exempted from using the word "Limited" in their names due to specific provisions in the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980. This exemption allows them to operate without the "Limited" suffix while still complying with the broader regulatory framework applicable to companies under the Companies Act.
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