Monday, August 15

Tag: Companies Act

Cabinet to consider amendment in the Companies Act, 44 out of 66 offences to be decriminalised
Uncategorized

Cabinet to consider amendment in the Companies Act, 44 out of 66 offences to be decriminalised

In what may be termed as a move towards alleviating the complexities in running businesses, the cabinet will apparently consider an amendment in the Companies Act. As per reports, the proposed changes have been pulled from the CLC (Company Law Committee) report headed by Injeti Srinivas, secretary of corporate affairs.  According to reliable sources, the amendment in the Act will reportedly decriminalise approximately 44 out of 66 offences. The list of infringements includes CSR (corporate social responsibility) violations and non-filing of returns.  The proposed changes in the Act are also said to consider easing norms related to remuneration for loss-making companies to enable higher salary structure for key managerial personnel, including non-executive directors in these fir...
Madras HC Upholds Constitutional Validity of Proviso to Section 167 (1) (a) of the Companies Act
News

Madras HC Upholds Constitutional Validity of Proviso to Section 167 (1) (a) of the Companies Act

The Madras High Court has upheld the constitutionality of section 167 (1) (a) of the Companies Act that mandates defaulting companies’ directors to vacate their office in other companies where they hold directorships except the company which had defaulted. The first bench of chief justices AP Sahi and Subramonium Prasad upheld that the proviso to section 167(1)(a) was neither arbitrary nor does it violate any of the fundamental rights provided under the Constitution of India. The high court order came in response to a petition filed by a company secretary challenging the proviso. According to the petitioner, the proviso to section 167 (1) (a) violated Article 14 that guarantees the fundamental right of equality.  It was also contended that the proviso is detrimental to non-defaul...
MCA Mandates Appointment of Whole-time Company Secretary to All Private Companies that have 10 Crore & More
MCA, Regulatory

MCA Mandates Appointment of Whole-time Company Secretary to All Private Companies that have 10 Crore & More

In the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2O14 (hereinafter referred to as said rules), for rule 8, it was stated that, "Every listed company and every other public company having a paid-up share capital of ten crore rupees or more to have a whole-time key managerial personnel." Vide Notification Dated 3 Jan 2020 Ministry of Corporate Affairs as made it mandatory to have a whole-time company secretary for every Private Limited Company that has a paid-up capital of Rs 10 Crore or more. This rule is effective from 1st Apr 2020. Infographic: No of Companies with paid-up capital of 10 Crore and above As per data from InstaFinancials, count of companies that have paid-up capital of 10 Crore and above 25,859 - All Companies 13,813 - Private...
Ministry of Corporate Affairs Notification on Share Capital Rules
Generic

Ministry of Corporate Affairs Notification on Share Capital Rules

G.S.R.-(E)- In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Share Capital and Debentures) Rules,2014, namely:   1. (1) These rules may be called the Companies (Share Capital and Debentures) Amendment Rules,2019.  (2) They shall come into force on the date of their publication in the Official Gazette.  2. In the Companies (Share Capital and Debentures) Rules, 2014, in rule 4 (hereinafter referred to as the principal rules), in sub-rule (1)   i) for clause (c), the following clause shall be substituted, namely:- "(c) the voting power in respect of shares with differential rights of the compan...
MCA seeks to move several non-compliance offences under the Companies Act to Civil Offence
Corporate

MCA seeks to move several non-compliance offences under the Companies Act to Civil Offence

Highlights: Ministry of Corporate Affairs is looking forward to consider number of other penal provisions in the Companies Act, 2013 and rule them as civil offences. The panel submitted report, suggesting to re-categorise 16 offences out of 81 in the category of compoundable offencesNon-compliance under Section 53 of the Companies Act, that restricts issuance of shares at a discount is now punishable with a fine rather than  penalty or imprisonment Days ago government decided to decriminalise non-compliance with corporate Social Responsibility (CSR) spending norms and now the Ministry of Corporate Affairs is looking forward to consider number of other penal provisions in the Companies Act, 2013 and rule them as civil offences.  Last July, the ministry formed a 10-member...
Corporate, Financial Institutions

Names of 55K Directors Linked to Delisted ‘Shell Companies’

The Ministry of Corporate Affairs has made the names of directors linked with shell companies public. The registration of these shell companies was earlier canceled by MCA. Highlights: Name of 55,000 directors made public by MCA, they are linked to the shell companies The directors are associated with companies that have not filed their financial statements for three consecutive years Directors will not be eligible under Section 164(2) to be re-appointed as a director of that company or appointed in any other company for five years from the date of default MCA has also identified professionals, chartered accountants, company secretaries and cost accountants associated with the shell companies The Ministry of Corporate Affairs had already delisted around 2,09,032 companies and no...