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