Companies Act Section 469 — Power of Central Government to make rules
CHAPTER XXIX MISCELLANEOUS
Commercial / Corporate
Summary
Sub-section (1) allows the Central Government to create rules, through a formal public notification, for the purpose of implementing the provisions of this Act.
Sub-section (2) clarifies that the government's rule-making power is broad. It can make rules on any matter that this Act specifically says must be, or may be, prescribed by rules, as well as any matter where the Act allows for rules to be made.
Sub-section (3) states that a rule made under sub-section (1) can include a penalty for breaking that rule. The penalty can be a fine of up to five thousand rupees. If the violation continues over multiple days, an additional fine of up to five hundred rupees can be imposed for each day after the first day of the violation.
Sub-section (4) requires that every rule made under this section, and every regulation made by the Securities and Exchange Board under this Act, be placed before both Houses of Parliament as soon as possible after it is made. It must remain before Parliament for a total of thirty days, which can be spread across one or more sessions. If both Houses agree to modify the rule or regulation, or agree that it should not be made at all, before the end of the session immediately following the session(s) where it was laid, then the rule or regulation will only take effect in its modified form or will have no effect, as the case may be. However, any such modification or cancellation does not affect the validity of anything already done under that rule or regulation before the change.
Official Text
(1) The Central Government may, by notification, make rules for carrying out the provisions of this Act.
(2) Without prejudice to the generality of the provisions of sub-section (1), the Central Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which provision is to be or may be made by rules.
(3) Any rule made under sub-section (1) may provide that a contravention thereof shall be punishable with fine which may extend to five thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which such contravention continues.
(4) Every rule made under this section and every regulation made by Securities and Exchange Board under this Act, shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.