REGISTERED No. D. 221 रजिस्ट्री पं ० डी. 221
भारतको राजपत्र The Gazette of India
EXTRAORDINARY
भाग II सण्ड-1
PART II- Section 1
प्राधिकार से प्रकातिर
PUBLISHED BY AUTHORITY
- =
सं ० 50] मई दिल्ली, सं.मवार , दिसम्बर 5 , 1966/ अग्रहायण 14, 1888
No. 50 ] NEW DELHI , MONDAY , DECEMBER 5 , 1966 / AGRAHAYAΝΑ 14 , 1888
इस भाग में भिम्म पृष्ठ संख्या वी जाती है जिससे कि यह अलग संकलन के रूप में रखा आ सके । Separate paging is given to this Part in order that it may be filed as a separate commpilation.
MINISTRY OF LAW
(Legislative Department )
New Delhi , the 5th December , 1966 / Agrahayana 14 , 1888 ( Saka )
The following Act of Parliament received the assent of the Pre- sident on the 5th December , 1966 , and is hereby published for general information:-
THE COMPANIES ( SECOND AMENDMENT) ACT , 1966
No. 37 or 1966
[5th December , 1966 ]
An Act further to amend the Companies Act , 1956 .
BE it enacted by Parliament in the Seventeenth Year of the Republic of India as follows : -
Short title 1. This Act may be called the Companies ( Second Amendment ) Act, 1966.
1 of 1956
Amend- 2. In section 108 of the Companies Act , 1956 ,-
(I ) for sub - sections ( 1A ) , ( 1B) and (IC) , the following ment sub-sections shall be , and shall be deemed to have been , substitu- of section 108 of the
Companies
Act, 1956
(549) THE GAZETTE OF INDIA EXTRAORDINARY [PART II 550
ted on the 1st day of April , 1966 , namely :
" ( 1A ) Every instrument of transfer of shares shall be in such form as may be prescribed , and---
(a) every such form shall, before it is signed by or on behalf of the transferor and before any entry is made therein, be presented to the prescribed authority , being a person already in the service of the Government , who shall stamp or otherwise endorse thereon the date on which it is so presented , and
(b) every instrument of transfer in the prescribed form with the date of such presentation stamped от otherwise endorsed thereon shall , after it is executed by or on behalf of the transferor and the transferee and completed in all other respects , be delivered to the company,一
( i) in the case of shares dealt in or quoted on a recognised stock exchange , at any time before the date on which the register of members is closed , in accordance with law, for the first time after the date of the presentation of the prescribed form to the prescribed authority under clause (a ) or within two months from the date of such presentation , which- ever is later ;
(ii ) in any other case , within two months from the date of such presentation.
31 of 1965 .
(1B) Notwithstanding anything contained in sub- section ( 1A ) , an instrument of transfer of shares , executed before the commencement of section 13 of the Companies (Amendment ) Act , 1965 , or executed after such commence- ment in a form other than the prescribed form , shall be accepted by a company ,
(a) in the case of shares dealt in or quoted on a recognised stock exchange , at any time not later than the expiry of six months from such commencement or the date on which the register of members is closed , in accordance with law , for the first time after such commencement , whichever is later ;
(b ) in any other case , at any time not later than the expiry of six months from such commencement .
(1C) Nothing contained in sub - sections ( 1A) and ( IB) shall apply to THE GAZETTE OF INDIA EXTRAORDINARY
SEC. 1 ]
551
(A) any share-
(i) which is held by a company in any other body corporate in the name of a director or nominee in pursuance of sub - section ( 2) , or as the case may be, sub - section ( 3 ) , of section 49 , or
( ii ) which is held by a corporation , owned or controlled by the Central Government or a State Government , in any other body corporate in the name of a director or nominee , or
(iii ) in respect of which a declaration has been made to the Public Trustee under section 153B, if-
(1) the company or corporation , as the case may be, stamps or otherwise endorses , on the form of transfer in respect of such share , the date on which it decides that such share shall not be held in the name of the said director or nominee or , as the case may be , in the case of any share in respect of which any such declaration has been made to the Public Trustee , the Public Trustee stamps or otherwise en- dorses , on the form of transfer in respect of such share under his seal , the date on which the form is presented to him , and
(2) the instrument of transfer in such form , duly completed in all respects , is delivered to the-
(a) body corporate in whose share such company or corporation has made investment in the name of its director or nominee , or
trust, (b) company in which such share is held in
within two months of the date so stamped or other- wise endorsed ;
or
(B ) any share deposited by any person with-
(i ) the State Bank of India , or
(ii ) any scheduled bank, or
(iii ) any banking company (other than a sche- duled bank) or financial institution approved by the Central Government by notification in the Official Gazette ( and any such approval may be accorded so as to be retrospective to any date not earlier than the 1st day of April , 1966 ) , or THE GAZETTE OF INDIA EXTRAORDINARY [PART II 552
(iv) the Central Government or a State Govern- ment or any corporation owned or controlled by the Central Government or a State Government ,
by way of security for the repayment of any loan or ad- vance to , or for the performance of any obligation under- taken by , such person , if-
(1) the bank, institution , Government or corpo- ration , as the case may be , stamps or otherwise en- dorses on the form of transfer of such share-
(a) the date on which such share is return- ed by it to the depositor , or
(b) in the case of failure on the part of the depositor to repay the loan or advance or to per- form the obligation , the date on which such share is released for sale by such bank , institution , Government or corporation , as the case may be , or
(c) where the bank , institution , Govern- ment or corporation, as the case may be , intends to get such share registered in its own name , the date on which the instrument of transfer relating to such share is executed by it ; and
(2) the instrument of transfer in such form , duly completed in all respects , is delivered to the com- pany within two months from the date so stamped or endorsed .
Explanation . Where any investment by a company or a corporation in the name of its director or nominee referred to in clause ( A ) ( i ) or clause (A) ( ii ) , or any declaration referred to in clause ( A ) ( iii ) , or any deposit referred to in clause (B ) , of this sub - section is made after the expiry of the period or date mentioned in clause (a) of sub - section ( 1B ) or after the expiry of the period mentioned in clause ( b ) of that sub - section, as the case may be , the form of transfer , in respect of the share which is the subject of such investment , declaration or deposit , means the prescribed form; ог
(C) any share which is held in any company by the Central Government or a State Government in the name of its nominee , except that every instrument of transfer which is executed on or after the 1st day of October , 1966, in respect of any such share shall be in the pres- cribed form. " ;
THE GAZETTE OF INDIA EXTRAORDINARY
SEC . 1 ]
553
( II) in sub - section ( ID ) ,一
( i) after the words , brackets , figure and letter " or sub- section ( 1B ) " , the words , brackets , figure and letter sub - section ( 1C) " ; and "or
( ii) after the words " as it may deem fit " , the words "whether such application is made before or after th expiry of the periods aforesaid"
shall be , and shall be deemed to have been , inserted on the 1st day of April , 1966 .
Valida- tion .
31 of 1965
3. Notwithstanding any judgment , decree or order of any court or tribunal to the contrary , or anything contained in any law for the time being in force , no order , rule , regulation or appointment made , direction given or thing done , by the Chairman or any other member of the Company Law Beard , acting individually , before the commencement of the Companies ( Amendment ) Act , 1965, shall be deemed to be invalid , or ever to have become invalid , by reason only of the fact that such Chairman or cther member , acting individually , had no power to make such order , rule , regulation or appointment or give such direction or do such thing and every such order , rule , regulation or appointment made and every such direction given and thing done shall be deemed to have been made , given or done , as the case may be , by the Company Law Board .
11 of 1966 .
4. ( 1 ) The Companies ( Amendment ) Ordinance , 1966 is hereby Repeal repealed. and saving.
(2) Notwithstanding such repeal , anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provision of this Act , as if this Act had commenced on the 21st day of September , 1966 .
S. P. SEN - VARMA , Secy . to the Govt . of India .
PRINTED IN INDIA BY THE GENERAL MANAGER , GOVERNMENT OF INDIA PRESS . MINTO ROAD , NEW DELHI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS .