I completely agree with your views. In fact Companies (Amendment) Act 2000 was not at all drafted properly. When I saw the amendment for the first time in 2000 I was surprised to see amendment of Section 3(1)(iii) (definition of 'Private Company'). How a company on the date of incorporation itself can have minimum paid up capital of Rs.1 lac? After incorporation company will apply for PAN card, then pass Board resolution for opening bank account and then only share application money can be deposited in the Bank and thereafter Board resolution has to be passed for allotment of shares. Companies have to be given reasonable time of 2-3 months for completing these formalities.
Does this mean that till such time the company will be neither private company nor public company, since the definition itself has been amended!! I thought that the government would realise the mistake and willl soon rectify the same. However, the Act continues till date. Now it is for the professionals to go on putting their own arguments without any end result.....