№ files_lp_3_process_7_075256
Government notification establishing regulatory directions, financial limits, governance conditions, and operational restrictions applicable to Nidhis and Mutual Benefit Societies under the Companies Act, 1956 as of 26 July 2001.
Issuing Authority: Government of India
Ministry: Ministry of Law, Justice and Company Affairs
Department: Department of Company Affairs
Document Type: Government Notification
Notification Number: G.S.R. 555(E)
Date of Issue: 26 July 2001
Place of Issue: New Delhi
Legal Basis: Section 637A(1) of the Companies Act, 1956
Subject: Directions to Nidhis and Mutual Benefit Societies under Section 620A of the Companies Act, 1956
Scope of Application: All companies declared as Nidhi or Mutual Benefit Society before or after the date of notification
Superseded Notifications: GSR 737(E) dated 1.11.1999; GSR 780(E) dated 19.11.1999; GSR 347(E) dated 25.4.2000
Key Provisions: Restrictions on business activities, membership, share issuance, deposits, branch expansion, and financial dealings
Minimum Membership Requirement: 500 members
Minimum Net Owned Fund: Ten lakh rupees (with transitional provision until 31 December 2002)
Deposit Ceiling: Maximum twenty times of Net Owned Funds
Branching Conditions: Profitability for three continuous years and geographic limitations
Audit Requirement: Annual certification by statutory auditors
Geographical Limitation: No branches outside the State of the Registered Office
Price: 8 / 10 USD
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