Reference: Section 115 of Companies Act, 2013 and Rule 23 of Companies (Management and Administration) Rules, 2014
Doubt Text: The requirement for paid-up capital is not exceeding five lakh rupees (in Section) but not less than five lakh rupees (in Rule).
Now, which one is correct. If the rule (Ammended Limit) is correct, the Why didn’t they amend the Section.
Or is it just me misunderstanding and misinterpreting the language.
Also, the rule is amended twice, from “not less than” to “not more than” and then again to “not less than”. Is there any hidden mystery behind so many changes or it’s that the lawmakers were too confused just because of a small drafting mistake..?
Hey Qurious,
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Section gives an upper limit that rule cannot prescribe amount more than 5 lakh (which can be amended by parliament) but rule (which can be amended simply by ministry).
Government has prescribed the limit of 5 lakh. But cannot do more than 5 lakh.
Multiple amendment yes it looks like a drafting mistake.
Thank you so much, sir.
Also, yes I’ll reveal my name, but not right now. (I’ll inform you about the same in advance)
And if you still want to know, get Admin Access from Sanjay Sir, and guess what, you can check all my details there. 😉