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applicability of section 186

Prathamesh Pawar (IPCC student) (41 Points)

25 May 2018

is section 186 of the act applicable to govt. companies engaged in shipping business?

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Kartikey Jain (Intern) (2382 Points)
Replied 25 May 2018

As per Notification No. G.S.R. 463(E) dated 5th June,2015, the provisions of section 186 shall not apply to -

a) a Government company engaged in defence production;

b) a government company, other than a listed company, in case such company obtains prior approval of the Ministry or Department of the Central Government which is administratively in charge of the company, or, as the case may be, the State Government.

If the concerned Govt. Company falls in any of the above mentioned points, then Section 186 would not be applicable on it. Else it would have to comply with the provisions of Section 186 of the Companies Act, 2013.