Section 462 of the Companies Act, 2013
📘 Section 462 of the Companies Act, 2013
– Power to Exempt Classes of Companies from Provisions of the Act
⚖️ Provision Summary:
Section 462 empowers the Central Government to exempt certain classes of companies from the application of specific provisions of the Companies Act, 2013.
🧾 Key Provisions:
Power to Exempt:
The Central Government, in the public interest, may by notification:
Exempt any class or classes of companies from any provision of this Act.
Apply provisions with modifications or conditions.
Parliamentary Oversight:
Every notification issued under this section must be:
Laid before both Houses of Parliament for a total period of 30 days.
If both Houses agree to modify or disapprove it, the notification will take effect in that modified form or be nullified.
Retrospective Effect:
The exemption or modification may have retrospective effect, i.e., it can be applied from a past date if the notification so provides.
🛑 Purpose:
To provide regulatory flexibility by allowing the government to simplify compliance requirements for certain classes of companies, especially:
Private companies
Startups
Government companies
Section 8 companies (non-profits)
📌 Examples of Use:
Private companies have been exempted from certain provisions like Section 62(1)(a) (rights issue), subject to conditions.
Startups enjoy relaxed provisions on board meetings, cash flow statements, etc.
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