Showing posts with label
Amendments to Companies Act 2013.
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Showing posts with label
Amendments to Companies Act 2013.
Show all posts
Government introduces bill to
further amend Companies Act in Lok Sabha
Courtesy : DNA
Proposing a slew of changes, the bill seeks to simplify private placement
process, remove restrictions on layers of subsidiaries and investment
companies, amend CSR provisions to bring greater clarity and exempt certain
class of foreign entities from the compliance regime under the Act.
Under the law, certain class of companies are required to shell
out at least two per cent of their three-year annual average net profit towards
Corporate Social Responsibility (CSR) activities. While the norm came into
effect from April 1, 2014, stakeholders have been seeking clarity on certain
aspects of it.
The bill also proposes to allow unrestricted object clause in the Memorandum of
Association dispensing with "detailed listing of objects,
self-declarations to replace affidavits from subscribers to memorandum and
first directors".
Besides, the government is looking to omit provisions relating to forward dealing and
insider trading from the Act. Instead of the requirement of central government approval for
managerial remuneration above a prescribed limit, the bill proposes clearance
through special resolution by shareholders.
Other recommendations include introduction of test of materiality for
pecuniary interest for testing independence of independent directors, removal
of requirement for annual ratification of appointment or continuance of
auditor, align prescription for companies to have audit committee and
nomination and remuneration committee with that of independent directors.
Out of 470 sections of the Companies Act, 284 have come into
force. Most provisions came into effect from April 1, 2014. "The process for
establishment of the National Company Law Tribunal and National Company Law
Tribunal Appellate Tribunal is at its final stage. After the
constitution of these Tribunals, most of the remaining 186 sections of the Act
shall also be brought into force," the government said.
The Companies (Amendment) Bill 2016, among other things, seeks to relax the norms around
managerial remuneration, ease the process for private placement of shares and
remove provisions relating to forward dealing and insider trading from
the existing Company Law.
The Act has brought in significant changes with respect to
disclosures to stakeholders, accountability of directors, auditors and key
managerial personnel, investor protection and corporate governance.
Government considering amendments to Companies Act: Arun Jaitley
Courtesy-
Economic times
To further improve ease of doing business, the
government is considering
amendments to the Companies Act, Corporate Affairs Minister Arun Jaitley today
said.
The Companies Law Committee, which submitted its report to the government on
February 1, has suggested
amendments to 78 sections of the Act, excluding consequential amendments in
other sections.
The panel had looked into issues arising from the implementation of the
Companies Act, 2013.
To a query on whether the government is considering amending the Companies Act
so as to make doing business easier, Jaitley replied in the affirmative.
He said around 1,200 comments were received on the report submitted by the
Companies Law Committee (CLC).
"The comments were considered by the government while finalising its views
on accepting the recommendations of the CLC. As per requirements,
inter-ministerial consultation has to be completed before any further
action," Jaitley. ..
Key recommendations made by the panel include simplifying private placement
process, easing incorporation process and removing the restriction on layers of
subsidiaries and investment companies.
Most provisions of the Act came into force from April 1, 2014.
The Corporate Affairs Ministry has set up a Central Registration Centre (CRC) for faster processing of
applications for availability of names and it is being planned to extend the
services to incorporation of companies after necessary modifications in the MCA
21 system.
MCA 21 is the e-platform for companies to make their statutory filing to the
ministry. To facilitate ease of doing business, the ministry has introduced an
integrated form (INC-29) for incorporation of companies, omitted requirement for minimum
paid-up capital, made mandatory common seal for companies optional and did away
with filing for commencement of business, Jaitley said.
"Other
departments have also taken steps with emphasis on simplification of
existing rules and procedures and use of information technology for ease of
doing business and to make governance more effective and efficient," the
minister noted.
To a separate query, Jaitley said that unclaimed and unpaid dividend amount of Rs 1,273.66 crore has been
transferred to the Investor Education and Protection Fund (IEPF) after
expiry of the mandatory seven-year period for the period from 2001-02 to
2015-16, till February 26.
As many as 3, 74,727 companies
have not filed their annual and balance sheet for 2015, according to data from the
MCA 21 system.
Jaitley said that 3, 86,103
companies did not file their balance sheet while 3, 89,503 firms did not submit
their annual return.
"As per provisions of the Section 403 of the Companies Act, 2013, any
document can be filed on payment of such additional fee for delay as prescribed
within a period of .. 270
days from the date by which it should have been filed," the
minister said in another written reply to the Lok Sabha dated
