What is Company's failure to comply with provisions of this Chapter not to affect validity of contracts, etc What is Annual reports on Government companies Section 393 and 394 of Indian Companies Act 2013

Company's failure to comply with provisions of this Chapter not to affect validity of contracts, etc and Annual reports on Government companies are defined under Section 393  and 394 of Indian Companies Act 2013. Provisions under these Sections are:

 

Section 393 of Indian Companies Act 2013 "Company's failure to comply with provisions of this Chapter not to affect validity of contracts, etc"

Any failure by a company to comply with the provisions of this Chapter shall not affect the validity of any contract, dealing or transaction entered into by the company or its liability to be sued in respect thereof, but the company shall not be entitled to bring any suit, claim any set-off, make any counter-claim or institute any legal proceeding in respect of any such contract, dealing or transaction, until the company has complied with the provisions of this Act applicable to it.

 

Section 393A of Indian Companies Act 2013 "Exemptions under this Chapter"

The Central Government may, by notification, exempt
any class of-

(a) foreign companies;

(b) companies incorporated or to be incorporated outside India, whether the company has or has not established, or when formed may or may not establish, a place of business in India, as may be specified in the notification, from any of the provisions of this Chapter and a copy of every such notification shall, as soon as may be after it is made, be laid before both Houses of Parliament.]
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Ins. by s. 55, ibid. (w.e.f. 22-1-2021).

 

Section 394 of Indian Companies Act 2013 "Annual reports on Government companies"

(1) Where the Central Government is a member of a Government company, the Central Government shall cause an annual report on the working and affairs of that company to be--

(a) prepared within three months of its annual general meeting before which the comments given by the Comptroller and Auditor-General of India and the audit report is placed under the proviso to sub-section (6) of section 143; and

(b) as soon as may be after such preparation, laid before both Houses of Parliament together with a copy of the audit report and comments upon or supplement to the audit report, made by the Comptroller and Auditor-General of India.

(2) Where in addition to the Central Government, any State Government is also a member of a Government company, that State Government shall cause a copy of the annual report prepared under subsection

(1) to be laid before the House or both Houses of the State Legislature together with a copy of the audit report and the comments upon or supplement to the audit report referred to in sub-section (1).