The comparison between companies act 2013 and companies act 1956 and also have mentioned the Nidhi company rules 2014.
Definition
Nidhi company has not been defined anywhere in the act of 1956
Companies act 2013 and Nidhi rules 2014:
- Which is incorporated of Nidhi has been prescribed in the new act which means a company.
- Which is incorporated with the object of providence and savings between its members.
- Observes with such act as are authorized by central government for procedure of such class of companies.
Objects
1956 : No such provision in this act.
Companies act 2013 and Nidhi rules 2014 : A Nidhi company shall not have any objects it its memorandum except the object of borrowing and lending in its name and working the practice of providence and saving amongst its members,
Essential condition
1956 : No conditional of minimum paid-up capital
Companies act 2013 and Nidhi rules 2014: A Nidhi to be incorporated under the act which must have an equity share capital of minimum Rs.5 lakhs.
No of Members
1956 :
- A Nidhi company shall have
- Not less than 500 members
- Not owned funds of Rs 10 Lakhs
- Ratio of net owned fund to deposit of note more than 1:20
Companies act 2013 and Nidhi rules 2014
- A Nidhi company shall have
- Not less than 200 members
- Net owned funds of Rs 10 lakhs
- Un-encumbered term deposits of not less than 10% of its outstanding deposits
- Ratio of net owned fund to deposit of not more than 1:20
Statutory Return
1956 : No such provision in this act.
Companies act 2013 and Nidhi rules 2014: The Nidhi shall file a return of statutory compliances within 90 days from the close of the first financial year.
Issue of preference shares or debentures
1956 : No such restrictions under this act.
Companies act 2013 and Nidhi rules 2014: After the formation of the Act. Nidhi company shall not be allowed to issue preference shares, debentures or any other debt instrument by any name or in any form and if preference shares are already issued before registration, such shares shall be redeemed in accordance with the terms of issue of such shares.
Acquisition of shares by one Nidhi company in another
1956 : A Nidhi shall not guidance of formation of board of directors or acquire another purchase of shares of a company and concern to the rules are relevant to Nidhi companies’ effect. Provided with the permission of the central government, a Nidhi Company or Mutual Benefit Society could get shares of another Nidhi.
Companies act 2013 and Nidhi rules 2014: Nidhi shall not control the composition of the board of directors or get another company by acquire of securities of any other company in any manner whatsoever or enter into any provision for the change of its direction, unless it has passed a special resolution in its general meeting and also obtained the previous approval of the Regional Director having jurisdiction over such Nidhi.
Branches
1956 : Approval of regulatory authority was required. So such restriction regarding default in filing.
Companies act 2013 and Nidhi rules 2014: If Nidhi proposed to open more than 3 branches outside the district shall get the permission of regional director.
Nidhi cannot open offices or branches or collection centres or by whatever name called unless financial statement and annual return are filed with the registrar.
Deposits
1956 : Fixed deposits shall be accepted by Nidhi Company for minimum period of 12 months and maximum period of 60 months. For savings deposit account, the maximum balance at any given time qualifying for interest shall not exceed Rs. 20 thousand.
Companies act 2013 and Nidhi rules 2014 : Minimum period for accepting Fixed Deposits has been reduced to 6 months. For savings deposit account, the maximum balance at any given time qualifying for interest does not exceed Rs.1 lakh.
Loan
1956 : A Nidhi shall offer loans to its members against Immovable property provided that the period of repayment of such loan shall not exceed 5 years. The continuous profits is not create Nidhi in the three previous financial years of any fresh loans exceeding Rs.7.5 lakhs.
Companies act 2013 and Nidhi rules 2014 : A Nidhi shall offer loans to its members against Immovable property provided that the term of repayment of such loan shall not exceed 7 years. The continuous profits is not create Nidhi in the three previous financial years of any fresh loans exceeding 50%, of the maximum amounts of loans specified in the rules.
Rate of interest
1956 : The company is given a rate of interest charged on a loan, it shall not exceed 5% above the highest rate of interest offered on deposits by the Nidhi. Every company have some rate of interest on their registration.
Companies act 2013 and Nidhi rules 2014 : The Nidhi is to be charged on a rate of interest of any loan is not exceed 7.5%.
Director
1956 : No such conditions in this act
Companies act 2013 and Nidhi rules 2014: A Nidhi company cannot declare dividend exceeding 25% subject to approval of Regional Director.
Return to be filed
1956 : No such provision exists in this act
Companies act 2013 and Nidhi rules 2014 : Every Nidhi company shall file half yearly return with the registrar in form no. NDH-3 along with the fee as provided in companies (registration offices and fees, rules 2014) with 30 days of each half yearly duly certified by a company secretary in practice/ chartered accountant/cost accountant.
Statutory Auditor
1956 : A firm of audit cannot be appointed a statutory auditor for a continuous period of 5 years.
Companies act 2013 and Nidhi rules 2014 : A firm of audit cannot be re-appointed as a statutory auditor after a continuous 2 terms of 5 years.
Publication of audited accounts in two dailies
1956 : Every Nidhi company having membership of 10 thousand members and above or Rs.2 crore deposits at the end of each financial shall publish the audited accounts in two dailies.
Companies act 2013 and Nidhi rules 2014 : No such provision in this act.
Issue of prepaid interest warrant
In 1956 act : A Nidhi company is prohibited from issuing prepaid interest warrants,
Companies act 2013 and Nidhi rules 2014 : No such provision in this act .