Clause 81 - Substitution of section 406. - Companies (Amendment) Bill, 2017

Substitution of section 406. 81. For section 406 of the principal Act, the following section shall be substituted, namely:- Provision relating to Nidhis and its application, etc. '406. ( 1 ) In this section, Nidhi or Mutual Benefit Society means a company which the Central Government may, by notification in the Official Gazette, declare to be a Nidhi or Mutual Benefit Society, as the case may be. ( 2 ) The Central Government may, by notification in the Official Gazette, direct that any of the provisions of this Act specified in the notification- ( a ) shall not apply to any Nidhi or Mutual Benefit Society; or ( b ) shall apply to any Nidhi or Mutual Benefit Society with such exceptions, modifications and adaptations as may be specified in the notification. ( 3 ) A copy of every notification proposed to be issued under sub-section ( 2 ), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days, and if, both Houses agree in disapproving the issue of notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses. ( 4 ) In reckoning any such period of thirty days as is referred to in sub-section ( 3 ), no account shall be taken of any period during which the House referred to in subsection ( 3 ) is prorogued or adjourned for more than four consecutive days. ( 5 ) The copies of every notification issued under this section shall, as soon as may be after it has been issued, be laid before each House of Parliament.'.