Amended and updated notes on section 37 of Companies Act 2013. Detail discussion on provisions and rules related to action by affected persons.
Chapter III (Sections 23–42) of the Companies Act, 2013 (CA 2013) deals with the provisions related to prospectus and allotment of securities. Section 37 of CA 2013 provides for action by affected persons.
Recently, we have discussed in detail section 36 (Punishment for fraudulently inducing persons to invest money) of CA 2013. Today, we learn the provisions of section 37 of Companies Act 2013 read with the Companies (Prospectus and Allotment of Securities) Rules, 2014.
Section 37 of the Companies Act, 2013 has been notified by the Ministry of Corporate Affairs (MCA) vide Notification No. S.O. 2754(E) issued dated 12.09.2013. This notification was come into force from 12th September, 2013 i.e. the commencement date of section 37 is 12-9-2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | III |
| Chapter Name | Prospectus and Allotment of Securities |
| Section No. | 37 |
| Section Name | Action by affected persons |
| Monthly Updated Edition | Company Law PDF |
Section 37 of Companies Act 2013: Action by affected persons
Section 37 shall come into force on 12th September, 2013 vide Notification No. S.O. 2754(E) dated 12.09.2013.
A suit may be filed or any other action may be taken under section 34 or section 35 or section 36 by any person, group of persons or any association of persons affected by any misleading statement or the inclusion or omission of any matter in the prospectus.