The Companies Bill, 2009 seeks to provide stricter provisions for more effective enforcement action against companies involved in fraud. Provisions like initiating investigation by Central Government suo moto, allowing search and seizure during investigation without obtaining an order from Special Court, provision for freezing of assets of a company under investigation on the order of Tribunal have been provided. Besides, the Bill emphasizes disclosures, deterrent penalties and has extensive enforcement provisions.
The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Lok Sabha that 820 foreign companies have been registered during the last three years. The Government has received Rs. 6.91 crore, Rs. 9.56 crore and Rs. 8.24 crore respectively, in the last three years(2008, 2009 and 2010) by way of filing/registration charges.
The total managerial remuneration to be paid to a Board level CEO of a company having only one Whole Time Director or a Manager is 5% of the net profit of the company and the total remuneration to be paid to all the Board level Directors together of a company, having more than one Whole Time Director or Manager, is 10% of the net profit of the company under Section 198 of the Companies Act, 1956. In case of companies having inadequate profit or making losses the remuneration is determined in accordance with the directions under Schedule XIII of the Companies Act, 1956.
Violation of Companies Act – The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Lok Sabha that the number of prosecutions filed for the violations of the provisions of the Companies Act, 1956 and disposed of during last three years are as under:-
SFIO – The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Lok Sabha that keeping in view the recommendations made by Vepa Kamesam committee, it is proposed to give statutory recognition to SFIO. Besides, powers such as treating its investigation report as a report filed by a Police Officer, giving SFIO power to issue letter of requests (letter Rogatory) in cases involving companies having business/interests outside the country and definition of the term ‘fraud’ alongwith its punishment are also proposed to be included, subject to due approvals, in the revised Companies Bill for strengthening its enforcement framework.
Companies which had raised funds through Initial Public Offer were identified as Vanishing Company for (i) non maintaining of their registered office; (ii) non- traceability of directors(iii) non- filing of statutory returns/ listing requirements with the concerned Registrar of Companies / Stock Exchange for a period of 2 years.
Notification F. No. 275/05/2011- Income Tax CX.8A The existing practice of payment of court fee by the department, as appellant or as respondent, in the appeals filed before the Supreme Court, is that the respective field formation/directorate deposits it in a decentralized manner thorough the Central Agency Section (Supreme Court). However, the decentralized process of payment of court fee results in avoidable delays and thus causing delays in filing of appeals or the counters, as the case may be.
The Institute of Company Secretaries of India (ICSI) has today declared the results of Company Secretaries Examinations held in June, 2011 here in New Delhi today and released to all the Regional and Chapter Offices of the institute throughout the country for information of students and general public. This result is available on the internet at Institute’s website www.icsi.edu. along with subject wise break-up of marks.
The need for replenishing cash in the ATMs of banks, especially in times of strikes in banks/natural calamity so as to mitigate hardships caused to bank customers, was examined by RBI. As a first step in this direction, the use of other bank’s ATMs for cash withdrawals was made free of charge with effect from April 1, 2008 vide our circular DPSS No. 2007-2008/260 dated March 10, 2008. However, this measure would not suffice when there is an industry-wide strike call / other emergency and the ATMs of banks run out of cash.
Notification No. 61/2011 – Customs (N. T.) In exercise of the powers conferred by clauses (b) and (c) of sub-section (1) of section 7 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 63/1994-Customs (N.T.) dated the 21st November, 1994, namely
