Amendments to the Exemptions provided to Section 8 Companies

Amendments

  1. Its clarified that only Individuals can be appointed as a Director to the Board of Section 8 company. Further Section 8 Company needs to have minimum of 3 directors in case of Public Company and 2 in case of Private Company
  2. Section 8 companies can provide loans at lower than the prevailing interest rates of one year, three year, five year or ten year Government Security yields which is the closest to the tenor of the loan if
    1. 26 % or more of the paid-up share capital is held by the Central Government or State Governments, and
    2. Loan is provided for funding Industrial Research and Development projects in furtherance of the Objects as stated in its Memorandum of Association.
  3. All exemptions provided to a Section 8 Company stands withdrawn if they fail to file their financial statements or Annual returns with the Registrar

Click here to view the notification https://ca2013.com/wp-content/uploads/2017/06/ExemptionSection8Companies_14062017.pdf