Registered office ‑ Whether “local limits” means both local body limits and postal limits - Companies Law - No. 19/72

Circular : No. 19/72 [F. 8/3(146)/72 ‑ CL ‑ V], dated 26 ‑ 6 ‑ 1972. Subject:- Registered office ‑ Whether local limits means both local body limits and postal limits Clause (a) of sub‑section (2) of section 146 lays down that the registered office of a company shall not be shifted outside the local limits of any city, town or village where such registered office is situated unless the company passes a special resolution to that effect. As a result of rapid urbanisation, cities frequently tend to expand beyond municipal limits. In view of this, the expression local limits in the aforesaid section should be taken to mean both the local body limits and the postal limits, and where the two do not coincide, the wider of the two.