Page 13 - DCOM106_COMPANY_LAW

Company Law

Notes 1.3 Some Important Definitions

Some important definitions related to companies act are:
Officer: Section 2(30) provides that the term ‘Officer’ includes any director, manager or
secretary or any person in accordance with whose directions or instructions the board of
directors or any one or more of the directors is or are accustomed to act.
Relative: Section 2(41) provides that the term ‘relative’ means, with reference to any
person, any one who is related to such person in any of the ways specified in s.6, and no
others.
Section 6 provides that a person shall be deemed to be a relative of another, if, and only if:
(i) They are members of a Hindu undivided family; or
(ii) They are husband and wife; or
(iii) The one is related to the other in the manner indicated in Schedule 1A.

Schedule 1A provides the following list of relatives:
(i) Father, Father’s father, Father’s mother.
(ii) Mother (including step-mother), Mother’s mother, Mother’s father.

(iii) Son (Including step son), Son’s wife, Son’s son, Son’s son’s wife, Son’s daughter,
Son’s daughter’s husband.
(iv) Daughter (including step-daughter), Daughter’s husband, Daughter’s son, Daughter’s
son’s wife, Daughter’s daughter, Daughter’s daughter’s husband.
(v) Brother (including step brother), Brother’s wife.
Public Financial Institutions (S.4 A): The following financial institutions shall be regarded,
for the purposes of the Act, as public financial institutions, namely: (i) The Industrial
Credit and Investment Corporation of India Limited (ICICI), (ii) The Industrial Finance
Corporation of India (IFCI), (iii) The Industrial Development Bank of India (IDBI), (iv) The
Life Insurance Corporation of India (LIC), (v) The Unit Trust of India (UTI).

Also, s.4A empowers the Central Government to specify other institutions, as it may think
fit, to be a public financial institution by issuing a notification in the Official Gazette.
However, no institution shall be so specified unless (i) it has been established or constituted
by or under any Central Act; or (ii) not less than 51 per cent of the paid up share capital of
such an institution is held or controlled by the Central Government.
The Central Government has specified many other institutions to be public financial
institutions. Some of these are: (i) The Infrastructure Development Finance Company Ltd.,
(ii) National Housing Board, (iii) Rural Electrification Corporation Ltd., (iv) Indian Railways
Finance Corporation Ltd., (v) National Insurance Company Ltd., (vi) Power Finance
Corporation Ltd., (vii) Small Industries Development Bank of India, etc.
Section 4A is relevant in the context of Sections 94A and 224A.

Task “No civil court shall have jurisdiction to entertain any suit or proceeding in respect
of any matter which the Company Law Board is empowered to determine”. Discuss

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