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Power of Central Government or Company Law Board to accord Approval, etc., subject to conditions and to prescribe fees on applications - Declaration of Nidhi companies by Central Government subject to certain conditions - GSR 241, - Companies LawExtract NOTIFICATION NO. GSR 241, DATED 28-4-1995, ISSUED BY THE DEPARTMENT OF COMPANY AFFAIRS, MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS Subject:- Power of Central Government or Company Law Board to accord Approval, etc., subject to conditions and to prescribe fees on applications - Declaration of Nidhi companies by Central Government subject to certain conditions G.S.R. 241.- In exercise of the powers conferred by sub-section (1) of section 637A of the Companies Act, 1956 (1 of 1956), the Central Government hereby directs that (a) no company declared as a Nidhi under section 620A of the said Act after the publication of this notification shall (i) carry on chit fund or insurance or hire-purchase business or business in shares or debentures; (ii) open its branches in addition to the existing branches; (iii) open current accounts with its members; (iv) admit any body corporate as members in its company; (v) amend its memorandum of association or articles of association without the approval of the Central Government; and (b) every such Nidhi shall have (i) at least one thousand members; (ii) completed at least one financial year; and (iii) made a reasonable profit after wiping off all preliminary expenses and brought forward losses.
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