MINISTRY OF CORPORATE AFFAIRS

IMPORTANT POLICY DECISIONS TAKEN AND MAJOR ACHIEVEMENTS DURING THE MONTH OF JUNE, 2017

(1) Notifications:-

(I) Three notifications under section 462 of the Companies Act, 2013[CA-13] have been issued after laying of such notifications in draft form before both houses of These notifications provide exemptions from the provisions of the CA-13 to respective companies (viz. Private companies, Government companies and charitable companies) as per recommendations of Companies Law Committee and other suggestions of stakeholders.

New Exemptions to Private Companies under section 462 of CA, 2013 G.S.R. 583(E) 13/06/2017
New Exemptions to Government Companies under section 462 of CA, 2013 G.S.R. (E). 13/06/2017
New Exemptions to Section 8 Companies under section 462 of CA, 2013 G.S.R. 584(E). 13/06/2017

(II) Invoking the Powers of the Government under Section 54 of the Competition Act, 2012 (12 of 2003), two notifications were issued wherein the Central Government, in public interest, exempted every person or enterprise who is a party to a combination as referred to in Section 5 of the said Act from giving notice of the combination to the Competition Commission of India within thirty days mentioned in sub section 2 of Section 6 of the said Act, for a period of five years from the date of publication of notification and exempted the Vessels Sharing Agreement of Liner Shipping Industry from the provisions of Section 3 of the said Act, for a period of one year with effect from the 20th June, 2017.

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The first notification is expected to significantly ease the Mergers and Acquisitions climate in the country in pursuance of the Government’s objective of promoting Ease of Doing Business in the country and the second notification is expected to cater to the needs of the Shipping Industry for optimally utilizing capacities of Cargo Vessels and reduce operational costs.

Benefit of two years weightage of service to the EPF members No: Pension-Pen-I/3/4/2016/MOL&E/2/5684 21/06/2017
Exemption to every person or enterprise who is a party to a combination from giving notice for 5 Years S.O. 2039(E) 29/06/2017

(III) A notification for amending the Companies (Transfer of Pending Proceedings) Rules, 2014 has been issued. Through the amendment, the following changes have been made:-

(i) Cases where a company has issued a notice of resolution for voluntary winding up through advertisement and gazette notification as required under section 485 of Companies Act, 1956 are allowed to continue to be dealt with under the provisions of Companies Act, 1956. Prior to this amendment only voluntary winding-up petitions pending with High Court as on 1st April, 2017 were to be continued with High Court.

(ii) Change, of a technical nature, has also been made in the rule relating to transfer of pending proceedings where companies were not able to repay debts with a view to provide greater clarity in interpretation.

(iii) An order under section 470 (Removal of Difficulty) has been issued in order to provide for applicability of provisions of the Companies Act, 1956 in respect of pending voluntary winding up matters as per the revised stage.

(iv) This Ministry had placed, on 26th May, 2017, draft Companies (Registered Valuers and Valuation) Rules, 2017, on the Ministry’s website for public consultation up to 27th June, 2017. Concerned Ministries/Departments and Regulators have also been consulted. Large number of suggestions have been received which are being

(v) This Ministry has, on 28th June, 2017, placed a consultative paper for public suggestions/comments regarding commencement of provisions of section 2(87) of the Companies Act, 2013 which provides for restriction on the number of layers of subsidiaries which a company may have. The suggestions/ comments from the stakeholders as well as concerned Ministries/Departments/Regulators have been sought up to 20th July, 2017.

(vi) This Ministry has notified the Companies (Audit and Auditors) Second Amendment Rules, 2017 w.r.t. rotation of auditors. Through this amendment the threshold for private companies required to enforce rotation of auditors have been raised from Rs. 20 crore to Rs. 50 crore of paid up share capital or more.

(2) As on 30th June 2017, names of 102982 companies have been removed from the register of companies maintained by the Registrar of Companies by following the due procedure under Section 248 read with the Rules thereunder.

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