Amended and updated notes on section 378ZB of the Companies Act 2013 as amended by the Companies (Amendment) Act, 2020 and Company Rules made there under. Detail discussion on provisions and rules related to Share capital.
Chapter XXIA PART-V (Section 378ZB to 378ZD) of the Companies Act 2013 (CA 2013) deals with the provisions related to share capital and members rights. Section 378ZB of CA 2013 provides for Share capital.
Recently, we have discussed in detail section 378ZA (Annual general meetings) of CA 2013. Today, we learn the provisions of section 378ZB of the Companies Act 2013.
In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2020 (29 of 2020), the Central Government appoints the 11th February, 2021 as the date on which the provisions of section 52 of the Companies (Amendment) Act, 2020 shall come into force.
Accordingly, the provisions of section 378ZB are effective from 11th February, 2021. You may refer Notification No. S.O. 644(E) dated 11-02-2021. In this article, you will learn detail of the provisions of section 378ZB the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XXIA (PART-V) |
| Chapter Name | Share Capital and Members Rights |
| Section No. | 378ZB |
| Section Name | Share Capital |
| Monthly Updated Edition | Company Law PDF |
Section 378ZB: Share capital
Section 378ZB(1) of Companies Act
The share capital of a Producer Company shall consist of equity shares only.
Section 378ZB(2) of Companies Act
The shares held by a Member in a Producer Company, shall as far as may be, be in proportion to the patronage of that company.