This notification, G.S.R. 13(E), issued by the Ministry of Corporate Affairs on January 3, 2020, amends the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The amendments, called the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020, are effective for financial years commencing on or after April 1, 2020.
Key changes include:
* **Company Secretary Requirement:** Every private company with a paid-up share capital of ten crore rupees or more must have a whole-time company secretary.
* **Independent Director Requirement:** In addition to existing criteria, any company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more must have an independent director.
* **Clarification:** The paid-up share capital, turnover, or outstanding loans or borrowings are to be considered as existing on the last date of the latest audited financial statement for the purpose of determining applicability.
The principal rules were initially published under notification number G.S.R. 249(E) on March 31, 2014, and last amended under G.S.R. 875(E) on September 12, 2018.
The Joint Secretary, KVR Murty, signed the notification, which carries file number F. No. 01052013-CL-V-Pt-I.
Key Entities Referenced
Ministry of Corporate Affairs: The Indian government ministry responsible for corporate governance and regulation. It issued the notification.
New Delhi: The location where the notification was issued.
Companies Act, 2013: An Indian law that governs company formation, management, and regulation.
Companies Appointment and Remuneration of Managerial Personnel Rules, 2014: Rules pertaining to the appointment and compensation of managerial personnel in companies, which are being amended by this notification.
Companies Appointment and Remuneration of Managerial Personnel Amendment Rules, 2020: The title of the amendment rules introduced by this notification.
Central Government: The government body making the amendment to the rules.
KVR Murty: The Joint Secretary who signed the notification.
ten crore rupees: The minimum paid up share capital for a private company to require a whole-time company secretary as per the amendment.
रिज(cid:4)(cid:5)ी स.ं डी.एल.- 33004/99 REGD. NO. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एल.x-xअxG.-I0D9E0xx1x2 020-215263
CG-DL-E-09012020-215263
असाधारण
EXTRAORDINARY
भाग II—ख(cid:2)ड 3—उप-ख(cid:2)ड (i)
PART II—Section 3—Sub-section (i)
(cid:5)ािधकार स े(cid:5)कािशत
PUBLISHED BY AUTHORITY
स.ं 11] नई (cid:1)द(cid:3)ली, सोमवार, जनवरी 6, 2020/पौष 16, 1941
No. 11] NEW DELHI, MONDAY, JANUARY 6, 2020/PAUSHA 16, 1941
कारपोरेट काय (cid:10)म(cid:13)ं ालय
अिधसचू ना
नई (cid:4)द(cid:6)ली, 03 जनवरी, 2020
सा.का.िन.13(अ).—क(cid:17)(cid:18)ीय सरकार, कंपनी अिधिनयम, 2013 (2013 का 18) क धारा 469 के साथ प&ठत
उ* अिधिनयम क धारा 203 क उपधारा (1) +ारा ,द- शि*य/ का ,योग करत े 2ए, कंपनी (,बधं क य का5मक/ क
िनयुि* और पा&र8िमक) िनयम, 2014 का आग े और संशोधन करने के िलए िन:िलिखत िनयम बनाती ह,ै अथा>त:्-
1. (1) इन िनयम/ का संिAB नाम कंपनी (,बंधक य का5मक/ क िनयुि* और पा&र8िमक) िनयम, 2020 ह।ै
(2) य े िनयम 01 अ,लै , 2020 को या उसके पDात् ,ारंभ होने वाल े िव-ीय वषG के संबंध म (cid:17) लागू ह/गे।
2. कंपनी (,बंधक य का5मक/ क िनयुि* और पा&र8िमक) िनयम, 2014 (इसके पDात ् इस े उ* िनयम कहा
जाएगा), िनयम 8क के Iथान पर रखा जाएगा, अथा>त:्-
“8क. ,Kयेक ,ाइवेट कंपनी िजसक संदाय शेयर पूंजी दस करोड़ Nपय े या अिधक ह,ै एक पूण>कािलक कंपनी सिचव
रखेगी।”।
3. उ* िनयम/ के िनयम 9 के उपिनयम (1) म:(cid:17)-
() खडं म (cid:17) खंड (ख) के बाद, अतं म(cid:17) शRद “या” को अतं :Iथािपत (cid:4)कया जाएगा,
i
106 GI/2020 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(i) खंड (ख) के पDात ् िन:िलिखत खंड को अतं :Iथािपत (cid:4)कया जाएगा, अथा>त:्-
i
“(ग) बSक/ या साव>जिनक िव-ीय संIथान/ से एक सौ करोड़ Nपए या अिधक के बकाया ऋण/ या उधा&रय/ वाली ,Kयेक
कंपनी”।
( ) िन:िलिखत IपVीकरण को अंत:Iथािपत (cid:4)कया जाएगा, अथा>त:्-
iii
“IपVीकरण: इस उपिनयम के ,योजनाथ>, यह IपV (cid:4)कया जाता ह ै (cid:4)क नवीनतम संपरीिAत िव-ीय िववरण क अंितम
तारीख को िवWमान संदाय शेयर पूंजी, कारबार या बकाया ऋण या उधा&रयां, जैसा भी मामला हो, को Xयान म (cid:17) रखा
जाएगा।”।
[फा.सं.01/05/2013-सीएल- -पाट-> ]
V I
के.वी.आर. मू5त, संयु* सिचव
(cid:15)ट(cid:16)पण: मलू िनयम भारत के राजपY म(cid:17) अिधसूचना संZया सा.का.िन.249(अ), तारीख 31 माच>, 2014 +ारा ,कािशत
(cid:4)कए गए थ े और अंितम बार अिधसूचना संZया सा.का.िन. 875(अ), तारीख 12 िसतंबर, 2018 +ारा संशोिधत
(cid:4)कए गए।
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 3rd January, 2020
G.S.R. 13(E).—In exercise of the powers conferred by sub-section (1) of section 203 of the Companies Act,
2013 (18 of 2013) read with section 469 of the said Act, the Central Government hereby makes the following rules
further to amend the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, namely:-
1. (1) These rules may be called the Companies (Appointment and Remuneration of Managerial Personnel)
Amendment Rules, 2020.
(2) They shall be applicable in respect of financial years commencing on or after 1st April, 2020.
2. In the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (herein after
referred to as said rules), for rule 8A, the following shall be substituted as under:-
“8A. Every private company which has a paid up share capital of ten crore rupees or more shall have a whole-time
company secretary.”.
3. In the said rules, in rule 9 of the said rules, in sub-rule (1),
(i) after clause (b), at the end the word “or” shall be inserted.
(ii) after clause (b), the following clause shall be inserted, namely:-
“(c) every company having outstanding loans or borrowings from banks or public financial institutions of one hundred
crore rupees or more.”.
(iii) the following Explanation shall be inserted, namely:-
“Explanation :- For the purposes of this sub-rule, it is hereby clarified that the paid up share capital, turnover, or
outstanding loans or borrowings as the case may be, existing on the last date of latest audited financial statement shall
be taken into account.”.¹भाग IIµख(cid:2) ड 3 (ii)º भारत का राजप(cid:12) : असाधारण 3
[F. No. 01/05/2013-CL-V-Pt-I]
KVR MURTY, Jt. Secy.
Note: The principal rules were published in the Gazette of India vide notification number G.S.R. 249(E), dated the
31st March, 2014 and lastly amended vide number G.S.R. 875(E), dated the 12th September 2018.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.