Rules for Nidhi Company
Q. Which of the following is/are true regarding Nidhi Company?
1) As per Nidhi Rules, 2014, a Nidhi company shall be a public company.
2) Every Nidhi company shall, within a period of one year from the commencement of Nidhi Rules, 2014, ensure that it has not less than one hundred members.- Published on 21 Dec 16
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
ANSWER: Only 1
As per Nidhi Rules, 2014 issued under section 406 of the Companies Act, 2013, a Nidhi company shall be a public company and shall have a minimum paid up equity share capital of five lakh rupees.
Nidhi companies shall not issue preference shares, debentures or any other debt instrument by any name or in any form whatsoever.
A Nidhi company shall not admit a body corporate or trust as a member.
Further, every Nidhi company shall, within a period of one year from the commencement of Nidhi Rules, 2014, ensure that it has not less than two hundred members and that it has Net Owned Funds of ten lakh rupees or such higher amount as the Central Government may specify.