Amended and updated notes on section 406 of Companies Act 2013. Detail discussion on provisions and rules related to provision relating to Nidhis and its application, etc.
Chapter XXVI (Section 406) of the Companies Act, 2013 (CA 2013) deals with the provisions related to Nidhis. Section 406 of CA 2013 provides for provision relating to Nidhis and its application, etc.
Recently, we have discussed in detail section 405 (Power of Central Government to direct companies to furnish information or statistics) of CA 2013. Today, we learn the provisions of section 406 of the Companies Act 2013.
The provisions of section 406 are effective from 15th August, 2019. You may refer Notification No. S.O. 2269(E) issued dated 01-07-2019. In this article, you will learn detail of the provisions of section 406 the Companies Act 2013 read with Nidhi Rules, 2014.
| 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. | XXVI |
| Chapter Name | Nidhis |
| Section No. | 406 |
| Section Name | Provision relating to Nidhis and its application, etc. |
| Monthly Updated Edition | Company Law PDF |
Section 406 of Companies Act 2013: Provision relating to Nidhis and its application, etc.
Entire section 406 substituted by the Companies (Amendment) Act, 2017 and shall come into force on 15th August, 2019 vide Notification No. S.O. 2269(E) issued dated 01.07.2019
(1) In this section, “Nidhi” or “Mutual Benefit Society” means a company which the Central Government may, by notification in the Official Gazette, declare to be a Nidhi or Mutual Benefit Society, as the case may be.
(2) The Central Government may, by notification in the Official Gazette, direct that any of the provisions of this Act specified in the notification—
- (a) shall not apply to any Nidhi or Mutual Benefit Society; or
- (b) shall apply to any Nidhi or Mutual Benefit Society with such exceptions, modifications and adaptations as may be specified in the notification.
(3) A copy of every notification proposed to be issued under sub-section (2), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days, and if, both Houses agree in disapproving the issue of notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses.
(4) In reckoning any such period of thirty days as is referred to in sub-section (3), no account shall be taken of any period during which the House referred to in sub-section (3) is prorogued or adjourned for more than four consecutive days (5) The copies of every notification issued under this section shall, as soon as may be after it has been issued, be laid before each House of Parliament.