MEMBERSHIP
When you became a member of GREEN PARIVAR NIDHI Ltd.,
you are allotted one share under Nidhi notification
norms is ₨ 10 only. But this gives you a right to participate in the management
process of the organization through the MCA (Ministry of Corporate
Affairs).
Regulatory framework
Nidhis are companies registered® under section 620A of the Companies Act, 1956 (Section
406 of the new Companies Bill 2012, as passed by Lok Sabha) and is regulated by
Ministry of Corporate Affairs (MCA).Even though Nidhis are regulated by the provisions
of the Companies Act, 1956, they are exempted from certain provisions of the Act,
as applicable to other companies, due to limiting their operations within members.
Nidhis are also included in the definition of Non- Banking Financial companies or
(NBFCs) which operate mainly in the unorganized money market. However, since 1997,
NBFCs have been brought increasingly under the regulatory ambit of the Indian Central
Bank, RBI. Non-banking financial entities partially or wholly regulated by the RBI
include:
Mutual benefit financial company (MBFC), i.e. Nidhi Company;
mutual benefit company (MBC), i.e. potential Nidhi company; i.e., A company which
is working on the lines of a Nidhi company but has not yet been so declared by the
Central Government; has minimum net owned fund (NOF) of Rs.10 lakh, has applied
to the RBI for certificate of registration and also to Department of Company Affairs
(DCA) for being notified as Nidhi company and has not contravened directions/ regulations
of RBI/DCA.
The Central Government vide Notification No.5/7/2000-CL.V dated 23rd March 2000
constituted a Committee to examine the various aspects of the functioning of Nidhi
Companies. There was no Government Notification defining the word ‘Nidhi’. Taking
into consideration the manner of functioning of Nidhis and the recommendations of
the Shri P. Sabanayagam Committee in its report and also to prevent unscrupulous
persons using the word ‘Nidhi’ in their name without being incorporated by Department
of Company Affairs (DCA) and yet doing Nidhi business, the Committee suggested the
following definition for Nidhis:
A written “By – laws” is of paramount importance because:
- Without the written understanding, people may become confused and things may not
get done.
- It will act as a point of reference and help resolve any problem or controversy
that may arise.
- It reassures the public and funding bodies that the society is properly run and
that money is effectively managed.