Section 43 - Consequences of default in complying with conditions constituting a company a private company. - Companies Act, 1956

Private companies Consequences of default in complying with conditions constituting a company a private company. 43. Where the articles of a company include the provisions which, under clause (iii) of sub-section (1) of section 3, are required to be included in the articles of a company in order to constitute it a private company, but default is made in complying with any of those provisions, the company shall cease to be entitled to the privileges and exemptions conferred on private companies by or under this Act, and this Act shall apply to the company as if it were not a private company: Provided that the [1] [Central Government], on being satisfied that the failure to comply with the conditions was accidental or due to inadvertence or to some other sufficient cause, or that on other grounds it is just and equitable to grant relief, may, on the application [2] of the company or any other person interested and on such terms and conditions as seem to the [3] [Central Government] just and expedient, order that the company be relieved from such consequences as aforesaid. ------------------------------ Notes:- [1] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. Earlier the quoted words substituted for Court by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [2] Fees prescribed is Rs. 200. On notification of the commencement of the amendment, power will be transferred to the Central Government. [3] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002. w.e.f. a date yet to be notified. Earlier the quoted words substituted for Court by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991.