If failure is made in keeping an annual general meeting in accordance with section 166. However, the government may contained anything in this act or in the company articles on the application of any company member, call or direct the calling of the company general meeting and provide such important or extra directions as the government expects beneficial in relation to the calling, holding and conducting of the meeting. The rules that may be provided under this sub-section may contain a direction that one member of the company represent in person or by attorney shall be considered to authorize an management.
A general meeting keep in execution of sub-section (1) shall, point to any rules of the government be considered to be an annual general meeting of the company.
In the case of rehabilitation and revival of sick industrial companies under the conditions of this section shall have conduct the words “Tribunal” and “Central Government”.
Penalty for default in complying with section 166 or 167
The company and every officer of the company is punishable with a fine of fifty thousand rupees. If it continues, the amount may extend to Rs.2500.
Power of Tribunal in Order Meeting to be called
If for any causes it is unfeasible to call company meeting, other than an annual general meeting, in any process in which company meetings may be called or to hold or manage the company meeting in the way specified by this act or the articles, the board may, either of its own movement or on the application of any directors of the company or any company member who would be authorized to vote at the meeting.
The company may order a meeting to be called, managed and held in such way as the board thinks to fit.
Provide such important directors or ancillary as the board thinks advantageous, containing directions supplementing or modifying in relation to the holding, calling and performing the meeting, the performance of the conditions of this act and of the companies articles.
The directions which may be given under the sub-section may contain a direction that one company member existent by proxy or a person shall be considered to form a meeting.
An unpaid dividend to be transferred to special dividend account
After the start of the companies amendment act 1974, a dividend has been mentioned by a company, but they not been paid or claimed within 30 days from the date of the statement, to any shareholder allowed to the payment of the dividend. The company shall within 7 days from the date of expiry of the said term of 30 days, change the total amount of benefits remains unpaid, within the said time of 30 days to a particular account to be opened by the company in behalf any listed bank to be called “Unpaid Dividend Account of…Company Limited / Company (Private) Limited”.
Where the total or any section of any dividend, mentioned by a company before the start of the companies amendment act 1974 remains unpaid at such beginning, the company registration shall within 6 months from such start, transfer such unpaid amount to the account mention in sub-section (1).
Where payable to absence or inadequacy of profits in any year, any company submitted to mention dividend out of the increased profits gained by the company in previous years and changed by it to holds, such statements of dividend shall not be made except in conformity with such regulations as been made by the government.
If the loss is made in changing the total amount mentioned in sub-section (1) or any part thereof to the unpaid profit account of the specified company. The company shall spend from the date of such loss, interest on so much of the amount as has not been changed to the said account at the rate of 12% per annum. The interest is growing on such amount shall have advantage of the company members in part to the amount remaining unpaid to them.
Any money conveyed to the due dividend account of a company in performance of this clause which keeps due or unclaimed for a term of seven years from the date of such changes shall be transferred by the company to the budget started under the section 205c.
The company shall, when creating any transfer under sub-section (5) to the fund started under section 205C any due or unclaimed profits, enhance to such committee or authority as the government may appoint in this behalf a declaration in the specified form.
Payment of unpaid or unclaimed dividend
Any person declaring to be allowed to any money transferred under sub-section (5) of section 205A to the common interest amount of the government may assign to the government for an order for income of the money declared. The government may serve on a certificate by the company or otherwise that person is allowed to the total or any part of the money declared create an order for the payment to that person of the sum due to him.
Establishment of Investor education and protection fund
The central government shall start a fund named as Investor Education and Protection Fund.
The fund should be credited in the following amounts:
- The outstanding amounts in the dividend accounts of companies.
- Companies which have matured deposits.
- Companies which have matured debentures.
- No such amounts mentioned to in clauses (a) to (d) shall form section of the fund unless such amounts have keep unclaimed and due amount for a term of seven years. Most of the company registration have valid identification of proofs.
- The fund shall be assigned for investor’s perception and conservation of the interests of investors in conformity with such orders.
Constitution of National Advisory Committee on Accounting Standards
In the official gazette, central government may notice to be an advisory committee to be called the national advisory committee on accounting standards to guide the central government on the expression and laying down of accounting procedures and standards for validation by companies.
The advisory committee shall have the following members such as:
- One officer of the RBI
- One officer of the Central government
- One official in SEBI
- One official of the CAG
- A person who keeps professor in finance, accountancy or business management in any considered university.
The company registration office in Bangalore must have certain permits to allow their respective members to participate in this committees.