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 s bstituted;
(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 rupe s.(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.".
