Ministry Updates for Nidhi companys.
·
Overview
Central Government has recently amended the
provisions related to NIDHI under the Companies Act and the Rules (effective
from 15.08.2019).
·
Why amended:
ü to
make regulatory regime for Nidhi Companies more effective and
ü also
to accomplish the objectives of transparency &
ü investor
friendliness in corporate environment of the country.
·
Define Nidhi: (Under
Nidhi Rules)
Nidhi
is a company which has been incorporated as a Nidhi with the object of :
ü cultivating
the habit of thrift and
ü saving
amongst its members,
ü receiving
deposits from,
ü and
lending to, its members only, for their mutual benefit
·
Change via this amendment
1. Declaration in
form NDH-4
The
amended provisions of the Companies Act (Section 406) and Nidhi rules (as
amended w.e.f. 15.08.2019) require that the Nidhi companies have to apply
to the Central government for updation of their status/ declaration as Nidhi
Company in Form NDH-4.
2.
The time-frame for
applying to Central Government in form NDH-4 is as under:-
i)
Companies incorporated as Nidhi before
Nidhi Amendment Rules, 2019 i.e. 15.08.2019 have to apply within a period of
one year from the date of its incorporation or within 9 months of the Nidhi
Amendment Rules i.e. 15.08.2019 whichever is later.
ii)
Companies incorporated as Nidhi on or
after Nidhi Amendment Rules, 2019 i.e. 15.08.2019 have to apply within 60 days
of expiry of one year from the date of incorporation or extended period (as
granted by concerned Regional Director).’
3. Consequences of Non – filing :
The Company shall not be allowed to file :
v Form No. SH–7 (Notice to
Registrar for any alteration of share capital) &
v Form PAS–3 (Return of
Allotment).
4.
In case of contravention
of the provisions:
the company and every officer of the company who is in
default shall initially be punishable with fine which may extend to
five thousand rupees and further fine in case of continuous violations.
5.
Investor Alerts :
Investors are advised to verify the status of Nidhi company
from the notification issued by Central Government in official gazette before
making any investment or deposit
Read full notification / gazette with formats at :
Disclaimer:
IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT,
SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION
WITH THE USE OF THIS INFORMATION.
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