Company Law
This query is : Resolved
24 March 2009
Hi,
Can anyone give me the correct explanation of section 149(2A), 149(2B) of Companies Act, 1956?
Can anyone give me the correct explanation of section 149(2A), 149(2B) of Companies Act, 1956?
24 March 2009
JUST UNDERSTAND THAT SECTION 149(2A) STATES THAT IN CASE A PUBLIC LTD COMPANY (PCLC) WANTS TO COMMENCE ANY BUSINESS OTHER THEN THE BUSINESS RELATED TO ITS MAIN OBJECTIVE
• IT NEED TO DO PASS A SPECIAL RESOLUTION (WHICH IS DIFFERENT FOR COMPANY EXISTING ON 1965 AND DIFFERENT FOR COMPANY COMMENCED AFTERWARDS) AND
• FILE WITH ROC DECLARATION HAS RESOLUTION (AS REQUIRED ) HAS BEEN PASSED.
HOWEVER THE U/S 149(2B)CENTRAL GOVERNMENT MADE SOME RELAXATION FROM THESE FORMALITIES OF PASSING RESOLUTION IN SECTION MENTIONED IN 149(2A). THE SECTION 149(2B) STATES THAT CENTRAL GOVERNMENT,ON AN APPLICATION BY THE BOARD OF DIRECTORS, ALLOWS THE COMPANY TO COMMENCE SUCH A BUSINESS BY PASSING ONLT ORDINARY RESOLUTION
I am also producing my notes for examination on these two sub section
Section 149 (2A) prohibits a public limited company from commencing any business other than
that covered by the main objects of the company, unless
• has by a special resolution, approving of the commencement of such business, and
• a duly verified declaration by one of its Directors or its Secretary in the prescribed form that either such a resolution has been passed or the case may be the provisions of Section 149(2B) have been complied with, has been filed with the Registrar.
In the context of this prohibition, a distinction has been made between a company existing immediately before the commencement of the Amendment Act, 1965 and one formed after such commencement.
In case of company existing before commencement of the act: the special resolution is required for commencing a business, in relation to any of the objects mentioned in its memorandum, which is not incidental to, or connected with the business it was carrying on at the commencement of the Amendment Act
In case of company formed after commencement of the act: the special resolution is necessary to set up a business in relation to any object other than its main objects, or ancillary to it, on its memorandum.
An ordinary resolution would be sufficient if, in addition the Central Government,on an application by the Board of Directors, allows the company to commence such a business [Section 149(2B)].
reagards.......................
• IT NEED TO DO PASS A SPECIAL RESOLUTION (WHICH IS DIFFERENT FOR COMPANY EXISTING ON 1965 AND DIFFERENT FOR COMPANY COMMENCED AFTERWARDS) AND
• FILE WITH ROC DECLARATION HAS RESOLUTION (AS REQUIRED ) HAS BEEN PASSED.
HOWEVER THE U/S 149(2B)CENTRAL GOVERNMENT MADE SOME RELAXATION FROM THESE FORMALITIES OF PASSING RESOLUTION IN SECTION MENTIONED IN 149(2A). THE SECTION 149(2B) STATES THAT CENTRAL GOVERNMENT,ON AN APPLICATION BY THE BOARD OF DIRECTORS, ALLOWS THE COMPANY TO COMMENCE SUCH A BUSINESS BY PASSING ONLT ORDINARY RESOLUTION
I am also producing my notes for examination on these two sub section
Section 149 (2A) prohibits a public limited company from commencing any business other than
that covered by the main objects of the company, unless
• has by a special resolution, approving of the commencement of such business, and
• a duly verified declaration by one of its Directors or its Secretary in the prescribed form that either such a resolution has been passed or the case may be the provisions of Section 149(2B) have been complied with, has been filed with the Registrar.
In the context of this prohibition, a distinction has been made between a company existing immediately before the commencement of the Amendment Act, 1965 and one formed after such commencement.
In case of company existing before commencement of the act: the special resolution is required for commencing a business, in relation to any of the objects mentioned in its memorandum, which is not incidental to, or connected with the business it was carrying on at the commencement of the Amendment Act
In case of company formed after commencement of the act: the special resolution is necessary to set up a business in relation to any object other than its main objects, or ancillary to it, on its memorandum.
An ordinary resolution would be sufficient if, in addition the Central Government,on an application by the Board of Directors, allows the company to commence such a business [Section 149(2B)].
reagards.......................
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reopen of assessment proceeding
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Gift Received from nonblood relative
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Rental income gst and it purpose
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
