NIDHI COMPANY
www.websoftex.com
ACT AND RULES • Every company which had been declared as a Nidhi or Mutual Benefit Society under sub-section (1) of section 620A of the Companies Act, 1956
www.websoftex.com
RULES AND REGULATIONS • Every company which had been declared as a Nidhi or Mutual Benefit Society under sub-section (1) of section 620A of the Companies Act, 1956; • every company incorporated as a Nidhi pursuant to the provisions of section 406 of the Act www.websoftex.com
GENERAL LIMITS 1.carry on the business of invoice fund, rent purchase finance, leasing finance, insurance or acquisition of securities issued by any body corporate; 2. issue preferred stock, debentures or the other document by any name or in any type whatsoever; www.websoftex.com
GENERAL LIMITS 3. open any accounting with its members; 4. acquire another company by purchase of securities or management the composition of the Board of administrators of the other company in any manner whatsoever
www.websoftex.com
GENERAL LIMITS 6.pledge any of the assets lodged by its members as security; 7. take deposits from or lend cash to any body corporate. 8. enter into any partnership arrangement in its borrowing. www.websoftex.com
RULES FOR DIRECTORS • The Director shall be a member of Nidhi. • The Director of a Nidhi shall hold workplace for a term up to 10 consecutive years on the Board of Nidhi.
www.websoftex.com
RULES FOR DIRECTORS • The Director shall be eligible for re-appointment solely when the expiration of 2 years of ceasing to be a Director. • Where the tenure of any Director in any case had already been extended by the Central Government, it shall terminate on end of such extended tenure.
www.websoftex.com