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Right of persons other than retiring directors to stand for directorship - Refund of deposit under section 160 of the Companies Act, 2013 in certain cases.
October, 20th 2014
                                                  General Circular   lto. 38/2O14
                             No. | /2212or3-cL-v
                              Government of India
                           Ministry of Corporate Affairs

                                              5th Floor, 'A" Wing, Shastri Bhavan,
                                                           Dr R.P. Road, New Delhi
                                                     Dated: 14th October, 2Ol4
 To

 All Regional Directors,
 All Registrars of Companies.


 Subject: Rtght of persons other than retlrlng dlrectora to stand for
          dlrecto$hlp - Refund of deposit under sectlon 160 of the
          Companles Act, 2013 ln certaln casee.

 Slr,

        Ctarity has been sought by companies registered under section 8 oI the
 Companies Act, 2013 (corresponding to section 25 of Companies Act, 1956)
 about the manner in which the amount of deposit of rupees one lakh received
 by them under sub-section (l) of section 160 of the Companies Act, 2013 (Act)
 is to be handled if the depositor fails to secure more than twenty hve per cent
 of the total valid votes. It has been noted that the relevant provision is silent on
 such issue.




       2. The matter has been examined in the Ministry and it is clarified that
 in such cases, the Board of directors of a section 8 company is to decide as to
 whether the deposit made by or on behalf of the person lailing to secure more
 than twenty-five percent of the valid votes is to be forfeited or refunded.

        3. This issues with the approval of the competent authority.

                                                                     Yours faithfully







 Copy to:-

--f . e-Governance Section and web contents Officer to place this circular on the
  Ministry website
  2. Guard File

 
 
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