30 November 2010
Sub rule 3 of rule 1 of Companies (Disqualification of Directors u/s 274(1)(g) of the Companies Act,1956),Rules,2003 says as follows:- "These rules shall apply to all public limited companies registered under the Companies Act,1956".
30 November 2010
Though 274(1) uses the generic word “Company”, 274(1)(g) [which was inserted by Amendment to the Act in 2000] uses specifically the words “Public Company”. It implies that all the provisions of Section 274 except for 274(1)(g) are applicable to all – (a) Public (b) Private (c) Private which is a subsidiary of public
And 274(1)(g) is applicable to only to Public Companies.
To arrive at the conclusion that 274(1)(g) is not applicable to Private Company which is a Subsidiary of a Public company we need to prove that
(1) It is not applicable to Private Companies. Because if a provision is applicable to a Private Company it is also applicable to Private Company which is a subsidiary of Public Company. (2) It is applicable only to Public Companies and not the Private Company which is a subsidiary of Public Company
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