Quick Bites Nidhi Company - Series 524



Quick Bites
Nidhi Company
11th DECEMBER, 2019

FAQ’s
1.       
What should be objects of Nidhi Company?

Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members.
The primary object of Nidhi is to carry on the business of accepting deposits and lending money to member.


2.       
Whether Loan can be providing to non-members.

The principle of mutual benefit has been to pool the savings from members and lend only to members and never have dealing with Nonmembers.
3.       
Who can become members of Nidhi Companies?

Members are only individuals. Bodies Corporate or Trusts are never to be admitted as Members
4.       
Whether Nidhi can engage itself in business other than mentioned above like (Chit Fund, Hire Purchase, Insurance, investing etc)?

Nidhi are not expected to engage themselves in the business of Chit Fund, hire purchase, insurance or in any other business including investments in shares or debentures.
5.       
What shall be status of Nidhi Company Private Company or Pubic Company?

A Nidhi to be incorporated under the Companies Act, 2013 shall be a public company.
6.       
What shall be minimum paid up share capital to incorporate Nidhi Company?

Nidhi shall have a minimum paid up equity share capital of five lakh rupees
7.       
Whether Nidhi Company can issue Preference Share?

Nidhi shall not issue preference shares.
8.       
What is requirement of minimum number of Members in Nidhi Company?

Every Nidhi shall, within a period of one year from the commencement of these rules, ensure that it has not less than two hundred members;
9.       
Whether a person can be director of NIDHI Company without holding any share capital?

The Director shall be a member of Nidhi. Therefore, it is mandatory for director of Nidhi Company to hold shares.
10.  
What shall be maximum tenure of director in Nidhi Company?

The Director of a Nidhi shall hold office for a term up to ten consecutive years on the Board of Nidhi. The Director shall be eligible for re-appointment only after the expiration of two years of ceasing to be a Director.
11.  
What is minimum nominal value of shares for Nidhi Company?

Every Nidhi shall issue equity shares of the nominal value of not less than ten rupees each.
12.  
What is requirement of minimum shareholding for deposit holder?

Every Nidhi shall allot to each deposit holder at least a minimum of ten equity shares or shares equivalent to one hundred rupees.
13.  
What is the maximum limit upto which Nidhi can accept deposits?

A Nidhi shall not accept deposits exceeding twenty times of its Net Owned Funds (NOF) as per its last audited financial statements.
14.  
What is maximum limit upto which a Nidhi can declare dividend?

a Nidhi shall not declare dividend exceeding twenty five per cent or such higher amount as may be specifically approved by the Regional Director for reasons to be recorded in writing



Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com).
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION

Comments

  1. Does loan given to members will be secured?

    Any collateral or mortgage needs to be given? Please advise

    ReplyDelete

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