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Companies (Share Capital and Debentures) Third Amendment Rules 2016

Companies Law - F. No. 01/04/2013 CL-V (part-II) - Dated:- 19-7-2016 - Government of India MINISTRY OF CORPORATE AFFAIRS Notification New Delhi, 19th July, 2016 G.S.R. 704 (E).-In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Share Capital and Debentures) Rules, 2014, namely: - 1. (1) These rules may be called the . (2) They shall come int .....

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, in sub-rule (4), after the first proviso, the following proviso shall be inserted, namely:- "Provided further that a startup company, as defined in notification number GSR 180(E) dated 17th February, 2016 issued by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India, may issue sweat equity shares not exceeding fifty percent of its paid up capital upto five years from the date of its incorporation or registration." 4. In the princi .....

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ion or registration." 5. In the principal rules, in rule 13, in sub-rule (2),- (i) clause (c) shall be omitted. (ii) for clause (h), the following clause shall be substituted, namely:- " (h) where convertible securities are offered on a preferential basis with an option to apply for and get equity shares allotted, the price of the resultant shares pursuant to conversion shall be determined- (i) either upfront at the time when the offer of convertible securities is made, on the basis of .....

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