Companies (Removal of Difficulties) Order, 2015 has been released by MCA Posted Date : 17-Feb-2015 , 08:06:23 Notification Detail : Companies (Removal of Difficulties) Order, 2015 has been released by MCA dated February 13, 2015 - The impact is as Small Company - 'A small company is now defined as a company (other than public company) whose paid up capital is upto Rs 50 lakhs AND turnover upto Rs 2 crores. Earlier it was OR.

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3. ITo be published in t-he Gazette of lndia, Extraordinary, Part II, Section
3, Sub-section (ii)l
GOVERXMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ORDER
New Delhi, the llLL February, 2015
S.O.
-
(El.- whereas, the Companies Act, 2013 (18 of 2013)
(hereinafter referred to as the said Act) received the assent of the
President on the 29th August, 2013;
And whereas, clause (85) of section 2 of the said Act provides for
definition of the term "small companJ/;
And whereas, clause (b) of sub-section (11) of section 186 of the
said Act provides that the requirements of provisions of section 186
lexcept sub-section (1) of the said sectionl shall not apply to any
acquisition made by a non-banking flnancial company registered under
Chapter IllB of t].e Reserve Bank of India Act, 1934 (2 of 1934) and any
other company whose principal business is acquisition of securities;
And whereas, such provisions of clause (85) of section 2 and
section 186 of the said Act had come into force on the 1"r day of April,
2014;
And whereas, the iollowing difliculties have adsen in giving effect
to the above provisions of the said Act:
(a) According to clause (85) of section 2, a company may be
treated as a'small company'if it meets either ofthe conditions provided
therein thereby making the second limit untesticted or
inconsequential. Difnculties have arisen in this regard as companies
which, though, meet one of the cdteria but exceed the monetary limit
in respect of second ctiteria excessively are also getting classified as
'small companies'; and

4. (b) in clause (b) of sub-section (1 1) of section 186, in the absence
of provisions for exemption to a banking company or an insurance
company or a housing finance company making acquisition of
securities in its ordin€ry course ofbusiness, a difficulty has ariseD that
such companies cannot make any acquisition of securities in their
ordinary course of business;
Now, therefore, in exercise of the powers conferred by sub-section
(1) of section 470 of the Companies Act, 2013 (18 of 2013), the central
Govemment hereby makes the following Order to remove ttre aforesaid
difliculties, namely:-
(1) Short title and commencement - (1)This order may be called the
Companies (Removal of Dilficulties) Order, 2015.
l2l lt shall come into force on the date ofits publication in the Ofricial
Gaz,elte.
2. In the Companies Act, 2013 (hereinafter referred to as the said
Actl, -
(al in section 2, in cLause (85), in sub-clause (i), for the word "or"
occurring at the end, the word "and" shall be substitut€d; and
(b) in section 186 of the said Act, in sub-section (11), in clause (b), after
item (iii), the following item shall be inserted, namely:-
"(iv) made by a banking company or an insurance company or a housing
finance company, making acquisition of securities in the ordinary
course of its business.".
[F. No. 1/ 13/2013-CL.V-Part]
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AMARDEEP SINGH BHATIA, JOIN SECRETARY