To further strengthen the corporate Governance mechanism in CPSEs by increasing the transparency of management systems and enable the Boards to be driven by the Comapnies Act’ 2013, DPE has reviewed the exemptions currently available to CPSEs and following 10 exemptions have been identified for withdrawal from existing 31 exemptions:

  1. Chapter II,  section4- Provision- Mandatorily using with the last word “Limited” in the case of a public limited company, or the last words “Private Limited” in the case of a private limited company.
  2. Chapter VII, sub-section (2) of section 96- Provision- Venue of the Annual General Meeting of the Company shall be the registered office of the Company or some other place within the city, town or village in which the registered office of the Company is situated.
  3. Chapter VIII, sub-section (4) of section 123.- Provision- Depositing dividend in a Scheduled Bank in a separate account within 5 days of declaration.
  4. Chapter XI, section 149(1)(b) and first proviso to sub- section (1) of section 149.- Provision- 1. Maximum 15 Directors.  2. Appointment of more than 15 Directors after passing Special Resolution.
  5. Chapter XI, sub-section (5) of section 152.- Provision- Filing of consent to act as Director with Registrar.
  6. Chapter XI, section 162.-Provision- Appointment of Directors to be voted individually.
  7. Chapter XI,  section 163.-Provision- Option to adopt principle of Proportional Representation for Appointment of Directors
  8. Chapter XI,  sub-section (2) of section 164.- Provision- Disqualification for not filing Financial Statements or annual returns or repayment of deposits, payment of interest, redemption of debentures and interest thereon, or payment of Dividend
  9. Chapter XI,  section 170.-Provision- Register of Director and Key Managerial Personnel and their shareholding
  10. Chapter XI, section 171-Provision- Members’ Right to inspect
Review of exemptions to Government Companies from provisions of Companies Act, 2013 for strengthening of Corporate Governance


Department of Public Enterprises

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