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ARTICLE · 01 JULY 2013

Ministry Of Corporate Affairs (MCA) Issues Clarification Regarding Power Of ROC’s To Obtain Declaration/Affidavits From Subscribers/First Directors At Time Of Incorporation

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In order to protect the interest of investors and to ensure that companies raise monies in accordance with the provisions of the Companies Act/Deposit Rules, in exercise of the powers under the Companies Act, the Registrar of Companies may obtain declaration/affidavits from subscribers/first directors first at the time of incorporation and from directors, subsequently whenever company changes its objects.

IndiaCorporate/Commercial Law

MCA vide Circular No. 11/2013 dated 29th May, 2013 clarified that in order to protect the interest of investors and to ensure that companies raise monies in accordance with the provisions of the Companies Act/Deposit Rules, in exercise of the powers under the Companies Act, the Registrar of Companies may obtain declaration/affidavits from subscribers/first directors first at the time of incorporation and from directors, subsequently whenever company changes its objects, to the effect that company/directors shall not accept deposits unless compliance with the applicable provisions of Companies Act, 1956, RBI Act 1934 and SEBI Act, 1992 and rules/directions/regulations made there under are duly complied and filed with concerned authorities.

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