The companies (amendment) act, 2000
The salient features of the Companies (Amendment) Act, 2000 were as follows:
- Change of Registered office from one city to another but within the same state would require the approval of Regional Director where the change relates to jurisdiction of one Registrar of companies to the jurisdiction of another Registrar of companies.
- The concept of deemed public company as laid down in Sec.43A was abolished.
- Definitions of private company under sec. 3(i)(iii) and of public company under Sec. 3(i)(iv) were made more comprehensive specifying a minimum capital base.
- The term “small Depositor” (with investment of not exceeding Rs.20000 within one financial year) was defined to provide protection to them.
- SEBI was named as the Administrative Authority in relation to prospectus giving it additional powers to conduct inspections on matters relating to transfer of shares, debentures, payment of dividends etc.
- A public company having a paid up capital of Rs. 5 crores or more and having 1000 or more small shareholders (with investment upto Rs.20,000) may have atleast one director elected to represent their interest on the board.
- Postal ballot including Voting through electronic mode was allowed.
- Interim dividends were equated with final Dividends making it obligatory for a company to pay such dividends within 30 days of declaration on lines similar to payment of final dividends.
- The number of companies in which a person could be a director was reduced to 15 from the earlier limit of 20.
- A private placement of offer to subscribe for shares or debentures to 50 or more persons was to be taken as a public offer.
- Office of public transfees was abolished.
- Initial Public Offer (I.P.O.) of any security of ten crores or more by a listed company was to be in only dematerialised form.