Exemption to Section 8 companies

Ministry of Corporate Affairs (MCA) vide Notification dated 13^th June, 2017 hereby amends its Notification No. G.S.R 466(E) dated 5^th June, 2015 (Principal Notification).

The Section 8 companies will not be eligible to claim the following exemptions alongwith those specified in Principal Notification, if they have defaulted in filing of financial statements or annual returns under section 137 and section 92 respectively with Registrar.

Section	Earlier	Amended
Clause (b) and First proviso to 149(1)	Earlier criteria related to minimum and maximum no. of directors was exempted	Now Section 149(1)(b) and First proviso to Section 149(1) are not applicable. i.e. Only criteria related to minimum no. of directors are applicable as follows: For public company -  3 directors For private company – 2 directors
186(7)	No Such provision	Section 186(7) shall not apply to a company in which : 26% or more of paid up share capital is held by Central Govt./State Govt. Or both in respect of loans provided by such company for funding Industrial Research and Development project in furtherance of its objects as stated in MOA