Nidhi incorporation rules require public company status and capital threshold; restrict preference shares and mandate name usage. Rule 4 requires a Nidhi to be a public company with a prescribed minimum paid-up equity share capital, subject to a transitional compliance period for existing entities. It prohibits issuance of preference shares after the Act's commencement and mandates redemption of any pre-existing preference shares according to their terms. The rule confines a Nidhi's objects to mutual thrift and savings activities, member deposits and lending for mutual benefit, and requires the corporate name to end with 'Nidhi Limited', subject to formal declaration under the statute.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Nidhi incorporation rules require public company status and capital threshold; restrict preference shares and mandate name usage.
Rule 4 requires a Nidhi to be a public company with a prescribed minimum paid-up equity share capital, subject to a transitional compliance period for existing entities. It prohibits issuance of preference shares after the Act's commencement and mandates redemption of any pre-existing preference shares according to their terms. The rule confines a Nidhi's objects to mutual thrift and savings activities, member deposits and lending for mutual benefit, and requires the corporate name to end with 'Nidhi Limited', subject to formal declaration under the statute.
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