Amended Companies (Appointment and Qualification of Directors) rules, 2014

Ministry of Corporate Affairs vide notification dated 5^th July, 2017 amended Companies (Appointment and Qualification of Directors) Amendment Rules, 2017(Rule). The amendment is in respect to Insertion of sub-Rule(2) in Rule 4.

As per Rule 4(1), the following classes of companies shall have at least two directors or such higher number of directors as may be required for composition of its audit committee as independent directors –

(i) the Public Companies having paid up share capital of ten crore rupees or more; or

(ii) the Public Companies having turnover of one hundred crore rupees or more; or

(iii) the Public Companies which have, in aggregate, outstanding loans, debentures and deposits, exceeding fifty crore rupees:

By inserting Sub-rule (2), the following classes of unlisted public company shall not be covered in the above provision:

(a) a joint venture;

(b) a wholly owned subsidiary; and

(c) a dormant company as defined under section 455 of the Act.".