43. Consequences of
default in complying with conditions constituting a company
a private company.—Where the articles of a
company include the provisions which, under clause (iii) of
sub-section (1) of section 3, are required to be included
in the articles of a company in order to constitute it a private
company, but default is made in complying with any of those
provisions, the company shall cease to be entitled to the
privileges and exemptions conferred on private companies by
or under this Act, and this Act shall apply to the company
as if it were not a private company:
Provided that the Central Government on being satisfied that
the failure to comply with the conditions was accidental or
due to inadvertence or to some other sufficient cause, or
that on other grounds it is just and equitable to grant relief,
may, on the application of the company or any other person
interested and on such terms and conditions as seem to the
Central Government just and expedient, order that the company
be relieved from such consequences as aforesaid.
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