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Advisory for shifting of RO

CS Swati D Rawat
Concerns Raised Over Newspaper Choice for Company Office Shift Ads Under Rule 30(5) of Companies Rules 2014 The Regional Director-North (RD-N) has raised concerns regarding the advertisement requirements for shifting a company's registered office between states, as per Rule 30(5) of the Companies (Incorporation) Rules 2014. Previously, advertisements could be placed in any newspaper, but RD-N now requires proof that the newspaper used has the widest circulation in the state. RD-N suggests referring to the Registrar of Newspapers for India (RNI) website to verify circulation ratings. There is a suggestion that RD-N could issue a circular specifying which newspaper should be used for such advertisements to ensure compliance. (AI Summary)

These days RD-N has started new issue while approving application for shifting of RO.

Rule 30 (5) of Companies (Incorporation) Rules 2014 interalia provide that in case of shifting of Registered Office from one state to another state the company shall advertise in the Form No. INC.26 in the vernacular newspaper of the principal vernacular language in the district and in English language in an English newspaper with the widest circulation in the state in which the registered office of the company is situated. Earlier RD was accepting advertisment in any news paper but now the new RD-N started raising question on news paper advertisement and asking company to prove whether the news paper in which advertisment has been published is in widest circulation?

RD-N view is that there can be only one newspaper in one state as per second amendment rules 30(5) which says that newspaper shall have the widest circulation. So I think we should be careful while choosing news paper and submitting application before RD-N.         

#RD is asking to refer RNI website to see the rating of news paper which in widest circulation.

Corporate Laws / IBC / SEBI
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DR.MARIAPPAN GOVINDARAJAN on Apr 23, 2018

In such cases RD may give circular to which newspaper the advt is to be given.

CS Swati D Rawat on Apr 23, 2018

As asked to refer RNI website to see the rating of news paper which in widest circulation

DR.MARIAPPAN GOVINDARAJAN on Apr 23, 2018

Whether the said site published the widest circulated newspaper in each region now and then?

If so, the legal provision itself would provide that the advertisement should be given in the English or local language having widest circulation as declared by RNI. If so all advertisements would be given in only one newspaper.

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