law: Companies (Amendment) Act, 2000
  3.
  
  Amendment of section 3.-
  In
  
  section 3 of the principal Act,-
  (a)
  
  in sub-section (1),-
  (i)
  
  in clause (iii),-
  (A)
  
  in the opening portion, for the words "means a company which, by its
  
  articles,-", the words "means a company which has a minimum paid-up
  
  capital of one lakh rupees or such higher paid-up capital as may be prescribed,
  
  and by its articles,-" shall be substituted;
  (B)
  
  after sub-clause (c), before the proviso, the following clause shall be
  
  inserted, namely:-
  "(d)
  
  prohibits any invitation or acceptance of deposits from persons other than its
  
  members, directors or their relatives:";
  (ii)
  
  for clause (iv), the following clause shall be substituted, namely:-
  '(iv)
  
  "public company" means a company which-
  (a)
  
  is not a private company;
  (b)
  
  has a minimum paid-up capital of five lakh rupees or such higher paid-up
  
  capital, as may be prescribed;
  (c)
  
  is a private company which is a subsidiary of a company which is not a private
  
  company;';
  (b)
  
  after sub-section (2), the following sub-sections shall be inserted, namely:-
  "(3)
  
  Every private company, existing on the commencement of the Companies (Amendment
  
  ) Act, 2000, with a paid-up capital of less than one lakh rupees shall, within
  
  a period of two years from such commencement, enhance its paid-up capital to
  
  one lakh rupees.
  (4)
  
  Every public company, existing on the commencement of the Companies (Amendment)
  
  Act, 2000, with a paid-up capital of less than five lakh rupees shall, within a
  
  period of two years from such commencement, enhance its paid-up capital to five
  
  lakh rupee .
  (5)
  
  Where a private company or a public company fails to enhance its paid-up
  
  capital in the manner specified in sub-section (3) or sub-section (4), such
  
  company shall be deemed to be a defunct company within the meaning of section
  
  560 and its name shall be struck off from the register by the Registrar.
  (6)
  
  A company registered under section 25 before or after the commencement of the
  
  Companies (Amendment) Act, 2000, shall not be required to have minimum paid-up
  
  capital specified in this section.".