Companies Act, 2013 Detailed analysis of 98 sections effective 12.09.2013 CS Mamta Binani

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Companies Act, 2013Detailed analysis of 98 sections effective 12.09.2013CS Mamta BinaniPast Chairperson (Year 2010), EIRC of ICSI

Companies Act, 1956 Companies Act, 2013

• It was introduced on 1st April, 1956.

• It has 658 Sections and 15 Schedules.

• It extends to the whole of India (Sikkim has its own Companies Act).

Companies Bill passed by the Lok-Sabha on 18th December, 2012.

Rajya Sabha passed it on 8th August, 2013 by voice vote

29th August-President’s Assent; 30th August-Gazette Notification

The Bill has 470 Clauses (309 pages), 29 Chapters, 7 Schedules and 29 Rules

It applies to the whole of India.

FINALLY……WE SEE THE MUCH AWAITED ACT FLUNGING INTO ACTION

•Ministry of Corporate Affairs issues Notification for Commencement of 98 Sections (out of 470 sections) of the New Act on 12th September, 2013

In PHASES

• It seems that it has been decided to enforce the provisions of the new legislation in phases.

• The provisions of the new Act which require statutory/regulatory consultation or functioning of new bodies or prescription of relevant rules/forms will be brought in force after the preparatory action is completed.

Probably, sections which do not require rules• In the first instance it has

been decided to notify those provisions of the Act which do not require such preparations.

Verbatim• The exact language of Notification is: In exercise of the powers conferred by

sub-section (3) of section 1 of the Companies Act 2013, the Central Government hereby appoints the 12th day of September, 2013 as the date on which the following provisions of the said Act shall come into force

Section 1 (3)

• This section shall come into force at once and the remaining provisions of this Act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision

Circular dated 12.09.2013 by way of a Notification• http://www.mca.gov.in/Ministry/pdf/

CommencementNotificationOfCA2013.pdf

• The notification has been signed by Renuka Kumar, Joint Secretary to the Government of India

Clarification on the notification dated 12.09.2013 • The clarification has been made by way of a

General Circular no.15/2013 dated 13.09.2013• The clarifications were:• 1. Sub-section (68) of section 2: ROC may register

those Memorandum and Articles of Association received till 11.09.2013 as per the definition clause of the .private company, under the Companies Act, 1956 without referring to the definition of private company under the new Act

Clarification on the notification dated 12.09.2013….contd • 2. Section 102: All companies which have issued notices of

general meeting on or after 12.9.2o13, the statement to be annexed to the notice shall comply with additional requirements as prescribed in section 102 of the new Act

• 3. Section 133: Till the Standards of Accounting or any addendum thereto are prescribed by Central Government in consultation with and after examination of the recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply

Clarification on the notification dated 12.09.2013….contd

• 4. section 180: In respect of requirements of special resolution under Section 180 of the said Act, as against ordinary resolution required by the Companies Act 1956, if notice for any such general meeting was issued prior to 12.9.2013, then such resolution may be passed in accordance with the requirement of the Companies Act 1956

Another circular on 18.09.2013• Ministry of Corporate Affairs had issued a general circular

dated 18.09.2013.• Background: Ministry had issued a notification on 12.09.2013 bringing

into force 98 sections or part thereof of the Companies Act, 2013. Ministry received requests for clarification as to whether the provisions of the Companies Act, 1956 corresponding to such 98 sections would continue to apply or not and hence as a clarification, it issued this circular dated 18.09.2013.

Continued….• This Circular clarified that with effect from

12.09.2013, the relevant provisions of the Companies Act 1956, which corresponds to the provisions of 98 sections of the Companies Act, 2013 brought into force on 12.09.2013, cease to have effect from that date.

In this Power Point Presentation

• The objective is provide a chapter-wise comparative summary of the 98 Sections made effective in the Companies Act 2013 vis a vis the Companies Act, 1956

Chapter – IPreliminary• Sections ranging from 1 to 2 • Total 2 sections• On 30th August 2013, Ministry of Law and Justice issued a

notification regarding the Companies Act, 2013 immediately after it received assent of President of India. Only section 1 of the Act of 2013 came into effect from that day. Section 1 as usual deals with short title, extent, commencement and application

• The 2nd section deals with the definition clauses• Out of 95 definitions, 83 definitions (in which 26 are new

definitions) have been notified w.e.f. 12.09.2013

Definitions-Section 2• The following definitions given against each clause, becomes

applicable: 1: abridged prospectus 3: alteration 4: appellate tribunal 5: articles 6: associate company 8: authorised capital (new) 9: banking company 10: board of directors or board 11: body corporate or corporation 12: book and paper and book or paper

Definition Continued…… 14: branch office 15: called-up capital (new) 16: charge (new) 17: chartered accountant (new) 18: chief executive officer (new) 19: chief financial officer (new) 20: company 21: company limited by guarantee 22: company limited by shares

Definition Continued…. 24: company secretary 25: company secretary in practice 26: contributory 27: control (new) 28: cost accountant (new) 29: Court (except sub clause iv which talks about special courts) 30: debenture 32: depository 33: derivative

Definition Continued…. 34: director 35: dividend 36: document 37: employees’ stock option 38: expert (new) 39: financial institution (new) 40: financial statement (new) 43: free reserves 44: global depository receipt (new) 45: government company

Definition Continued…. 46: holding company 49: interested director 50: issued capital (new) 51: key managerial personnel (new) 52: listed company 53: manager 54: managing director 55: member 56: memorandum 57: networth

Definition Continued…. 58: notification (new) 59: officer 60: officer who is in default 61: official liquidator 63: ordinary or special resolution (new) 64: paid up share capital (new) 65: postal ballot (new) 66: prescribed 67: previous company law (except sub clause ix relating to

Registration of Companies (Sikkim) Act, 1961

Definition Continued…. 68: private company 69: promoter (new) 70: prospectus 71: public company 72: public financial institution 73: recognised stock exchange 74: register of companies (new) 75: registrar 76: related party 77: relative (my comment: the list of relatives as per sub

clause iii is yet to be prescribed)

Definition Continued…. 78: remuneration 79: schedule 80: scheduled bank 81: securities 82: securities and exchange board 84: share 86: subscribed capital (new) 87: subsidiary company or subsidiary (except the proviso

and explanation (d)

Definition Continued…. 88: sweat equity shares 89: total voting power 90: tribunal (new) 91: turnover (new) 92: unlimited company (new) 93: voting right (new) 94: whole time director (new) 95: words & expression borrowed from SCRA, SEBI and

Depositories Act…

Chapter – IIIncorporation• Sections ranging from 3 to 22 • Total 20 sections• Out of which 3 sections has been made applicable from

12.09.13• The notified sections are 19,21,22

Subsidiary Co. not to hold shares in its holding Company

New Act (section 19)

• Subsidiary company shall not hold shares in its holding company (exceptions provided in 19(1)(a),(b),(c) and• No holding company

shall allot or transfer its shares to any of its subsidiary companies

Old Act (corresponding 42)

• Membership of holding company

Authentication of documents, proceedings and contracts


• A document or proceeding or contracts may be signed by any KMP or an officer duly authorised by the Board in this behalf

Old Act (corresponding 54) • Authentication of

documents and proceedings• A document or

proceeding requiring authentication by the company may be signed by a director, manager, secretary or other authorised officer of the company

Execution of bills of exchange etc.

New Act (section 22) • A bill of exchange, hundi or

promissory note shall be deemed to be proper if signed by any person acting under its authority, express or implied

• New: Execution of other deeds – POA

• Deeds signed by such an POA holder shall bind the company

Old Act (corresponding 47 & 48)

• Bills of Exchange & Promissory Notes

Chapter – IIIProspectus & Allotment of Sec• This chapter is divided into 2 parts• Part I – Public Offer and Part II – Private Placement• Sections ranging from 23 to 42, i.e. (23 to 41) and 42• Total 20 sections• Out of which 15 sections has been made applicable from 12.09.13,

all in Part I• The notified sections are 23, 24, 25, 29, 30, 31, 32, 33, 34, 35, 36,

37, 38, 39 and 40

Public offer and pvt. placementNew Act (section 23)

• It provides the ways in which: Public company or a Private company may issue securities.• It is to be noted here that

23(1)(b) and 23(2) has yet not been notified

• 23(1)(b): Private placement of shares by public companies

• 23(2): Issue of shares by private companies

Old Act (NEW provision)

• This is a new provision and no corresponding section could be found

Power of SEBI to regulate issue & transfer of securities etc


• It provides the provisions for the administration of issue and transfer of securities by SEBI, in relation to:

*Issue and transfer of securities; and

*Non-payment of dividendBy *listed companies or *those companies which intends

to get there securities listed• Scope widened

O. Act(corresponding 55A)

• Powers of Securities and Exchange Board of India

Doc containing offer of sec. for sale to be deemed prospectus


• Any document by which the offer for sale of securities is made to the public, it shall be deemed to be a prospectus and all sections for the same, shall be applicable to it.

• It is to be noted that section 25(3) has not been notified.

• This sub section brings out additional information required to be mentioned in the prospectus

Old Act(corresponding 64)

• Document containing offer of shares or debentures for sale to be deemed prospectus

Public Offer of Sec to be in Demat


• Applicable to every company making public offer and such other class of public companies as may be prescribed• Other companies may issue

securities in physical or demat form

Old Act(corresponding 68B)

• Applicable to every listed company making an initial public offer of any security for a sum of Rs 10 Crores or more

Advertisement of Prospectus


• Ad of Prospectus published in any manner shall specify the contents of its MOA:• Objects• Liability of Members• Share Capital• Subscriber Details• Capital Structure

Old Act(corresponding 66)

• Where any prospectus is published as a newspaper ad, it can do away with specification of the contents of the memorandum or signatories thereto or the number of shares subscribed by them

Shelf Prospectus (SP)New Act (section 31)

• Any class of companies prescribed by SEBI may file SP with ROC• At the stage of 1st offer of

securities• Period of Validity 1 year• Date of Opening becomes

Commencing Date• Prior to any subsequent offer

under the same SP, Co. to file with ROC Information Memorandum on new charges created or of any change in financial position

• Option to Refund Money

Old Act(corresponding 60A)

• Only Public Financial Institutions, Public Sector or Scheduled Banks whose main object is financing allowed to issue SP

Red Herring Prospectus (RHP)


• IM now RHP• Co. proposing to make an offer of

securities• RHP may be issued prior to issue

of Prospectus• RHP to be filed with ROC at least

3 days prior to opening of subscription list and the offer

• Upon closing of the offer, the details of information to be filed with ROC and SEBI

Old Act(corresponding 60B)

• Information Memorandum (IM)

Issue of Application Forms for Securities


• Every form of Application Issued for purchase of any Securities shall be accompanied by an abridged Prospectus

• Talks about abridged prospectus• It is to be noted that section

33(3) has not been notified. • This sub section brings out the

penalty provisions in case of default

Old Act(Corresponding 56)

• Matters to be stated and reports to be set out in Prospectus

• New Section Corresponds to Sec 56(3)

• Form was required to be accompanied by a Memorandum containing such salient features of a prospectus as was prescribed

Criminal Liability for Mis-statements in Prospectus

New Act (section 34)• Any statement which is Untrue or

Misleading in form or context or Inclusion or omission likely to mislead

• Section 447 (Punishment for Fraud) invoked

• Persons who have authorized the issue of such prospectus shall also be criminally liable

• Escape mechanism if the person can prove that such statement or omission was • Immaterial• Had reasonable grounds to

believe etc


• Earlier penal provision was for untrue statements only

Civil Liability for Mis-statements in Prospectus


• Civil Liability in case of prospectus issued for all type of securities.

• Where prospectus issued with an intention to defraud every person liable under this section shall be personally liable without any limitation for the losses incurred by any person who has subscribed

• It is to be noted that section 35(1)(e) which deals with inclusion of experts in the gamut has not been notified.


• The option to withdraw on becoming aware of any untrue statement after issue of prospectus and before allotment has been dispensed with-Sec 62(3)(b)

Punishment for Fraudulently inducing persons to Invest money


• Persons who fraudulently induces persons to invest money shall be liable for action under Sec 447 (Punishment for Fraud)

• This includes any agreement with a view to obtaining credit facilities from bank or financial institutions.

• A non compoundable offence


• Bank and Financial Institutions were not covered• It was a compoundable

offence

Action by Affected Persons (Sec 37)• New Section • A suit may be filed or• Any other action may be taken • U/s 34, 35 or 36• By any person, group of persons or any association of persons• Affected by any misleading statements, inclusion, omission• of any matter in the prospectus

Punishment for Personation for Acquisition etc of Securities


• Punishment u/s 447 (Fraud) for persons who apply in fictitious names, multiple applications

• Court may order disgorgement of gains, if any and seizure and disposal of the securities

• The amount so received by the court to be credited to the IAP fund.

Old Act(Corresponding 68A)

• Disgorgement provisions was not there earlier• Multiple applications in

different name or in different combination was not included earlier

Allotment of Securities by Companies New Act (section 39)

• Where no minimum amount has been subscribed and money received the amount needs to be refunded to all applicants within 30 days from date of issue of prospectus

• Co. having a share capital on allotment of securities (earlier only shares) file a return of allotment with ROC

• Rs 1000/- penalty for each day of continuing default

• It is to be noted that section 39(4) relating to Return of Allotment has not been notified.

Old Act(Corresponding 69 & 75)

• Prohibition of Allotment unless Minimum Subscription Recd (Sec 69)• Return as to Allotments

(Sec 75)• Only pertaining to Shares

Securities to be dealt with in SE New Act (section 40)

• Prospectus to mention name of SE where the securities will be dealt with

• Application money recd from the public to be kept in separate bank account.

• Co. may pay commission to any person in connection with subscription of securities

• It is to be noted that section 40(6) relating to commission payment has not been notified.

• Scope widened from shares and debentures to securities


• Allotment of shares and debentures to be dealt in on SE (Sec 73)• Power to pay certain

commission and prohibition of payment of all other commission, discount etc (Sec 76)

Chapter – IVShare Capital & Debentures• Sections ranging from 43 to 72 • Total 30 sections• Out of which 12 sections has been made applicable from 12.09.13• The notified sections are 44, 45, 49, 50, 51, 57, 58, 59, 60, 65, 69 &

70

Nature of Shares or Debentures New Act (section 44)

• Shares or Debentures or other interest of any member in the company shall be moveable property transferable in the manner provided in AOA

• No Change


• Provisions retained

Numbering of Shares

New Act (section 45)• Company having a share capital• Shares of such a company to be

distinguished by its distinctive number

• Save and except Shares held by a person as beneficial owner in a depository account

• No Major change


• Numbering of Shares (provisions retained)

Calls on Shares of Same Class to be made on uniform basis

New Act (section 49)• No change• When calls are made for further

capital on shares of a particular class, the calls shall be made uniformly.



Company to accept unpaid share capital although not called up

New Act (section 50)• No change• Allows a Company if authorized

by its AOA to accept amounts from members which are unpaid on the shares even though no call has been made.

• The acceptance of such amount shall not confer any voting rights against the amount paid till the call has been made.



Payment of Dividend in proportion to amount paid up

New Act (section 51)• No Change• Company if authorized by AOA

may pay dividend in proportion to the amount paid up on each share



Punishment for Personation of Shareholder

New Act (section 57)• It provides penalty for a person

who deceitfully personates the owner of any share or interest



Refusal of Registration & Appeal against Refusal

New Act (section 58)• 58(1)-Refusal by Private Ltd Co.-

to send intimation within 30 days from the date on which instrument of transfer/transmission is delivered to the Co.

• Notice to be sent to transferor and transferee giving reasons for refusal

• 58(2)-Securities in a public company is freely transferable. However, the act recognizes contract or arrangement in respect of transfer of securities

Old Act(Corresponding 111, 111A)

• Contract or arrangement in respect of securities was not there earlier

Refusal of Registration & Appeal against Refusal….contd

New Act (section 58)• 58(3)-Transferee may appeal to

tribunal against refusal. Either within 30 days from the date of refusal notice or in case no notice recd, 60 days from the lodgment date

• 58(4)-In case of public co.-transferee may appeal within a period of 60 days from such refusal or 90 days from the lodgment date


• Timelines changed as compared to earlier provisions

Rectification of Registration of Members

New Act (section 59)• Scope widened to Securities• If a person’s name is omitted from

the Register of Members without sufficient cause the aggrieved can appeal to the Tribunal for reinstatement of his name.

• Foreign members or debenture holders to prefer an appeal with a competent court to be set up outside India for restoration of their names.


• Earlier only applicable to shares and debentures• Foreign Members or

debenture holders’ appeal provision was not there earlier

Publication of Authorized, Subscribed & Paid Up Capital

New Act (section 60)• If a Co. publishes a notice,

advertisement or other official publications or business letter which states the amount of Authorized Share Capital, the Company should state in the said document the details of the subscribed and paid up capital.

• Penalty for non-compliance laid down


• Provisions Retained

Unlimited Company to Provide for Reserve Share Capital on Conversion into Limited Company

New Act (section 65)• Unlimited Company may be allowed

to increase its Nominal Capital provided that the same shall not be called up except at the time of winding up.


• Provisions Retained-No Change

Transfer of Certain Sums to CRR Account

New Act (section 69)• Where there is a buy back out of Free

Reserves or Share premium Account the amount equal to nominal value of shares bought back should be transferred to CRR(Capital Redemption Reserve)

• The said Reserve can be used for a bonus issue.

Old Act(Corresponding 77AA)

• Provisions Retained• Usage for Bonus Issue

earlier not specified

Prohibition for Buyback in Certain Circumstances

New Act (section 70)• A Co. cannot buy back its own shares

directly or indirectly through any Subsidiary or Investment Company.

• In case a co. defaults as prescribed, prohibition of buy back has an exception: if default is remedied and a period of 3 years has lapsed after such default ceased to subsist.

• It is to be noted that section 70(2) relating to prohibition of buy back of its own shares or securities under certain situations has not been notified

Old Act(Corresponding 77B)


Chapter – VAcceptance of Deposits by Co.’s• Sections ranging from 73-76• Total 4 sections• Out of which ‘NO’ sections has been notified as yet

Chapter – VIRegistration of Charges• Sections ranging from 77-87• Total 11 sections• Out of which only 1 section has been made applicable from

12.09.2013• The notified section is 86

Punishment for ContraventionNew Act (section 86)

• If the Company fails to comply with the provisions relating to Chapter VI, penalty will be imprisonment which may extend to six months or fine of minimum Rs.25,000 and maximum of Rs. 1 lac or with both.

• Penal provisions have been made stringent



Chapter – VIIManagement & Administration• Sections ranging from 88 to 122 • Total 35 sections• Out of which 13 sections has been notified from 12.09.13• The notified sections are 91, 100, 102, 103, 104, 105, 106, 107,

111, 112, 113, 114 and 116

Power to Close Register of Members or Debenture Holders or other Security Holders

New Act (section 91)• Manner for closure will be as

specified by SEBI• Applicable only to Listed or those

intending to get their securities listed


• Power to close Register of Members or Debenture Holders• Not applicable to other

Security Holders• As per plain reading was

applicable to all companies

Calling of Extra-ordinary General Meeting

New Act (section 100)• It is to be noted that section

100(6) relating to reimbursement of expenses incurred by requisitionists from the fee or other remuneration under Sec 197 payable to directors who were in default in calling the meeting, has not been notified

Old Act(Corresponding 169) • The explanation which was

given in the erstwhile 169(7)(b) has now been removed

• This means that adjournment to a date after the expiry of three months no more holds good

• Other provisions broadly retained

Statement to be Annexed to NoticeNew Act (section 102)

• To specify the nature of concern or interest, financial or otherwise, if any in respect of each of the following persons:

1. Every Director and the Manager, if any

2. Every other KMP and3. Relatives of the persons

mentioned above and4. Also as per 102(1)(b) to give any

other information and facts that may enable members to understand the meaning , scope and implications.


• Disclosure for KMP was not required• Not applicable from

11.09.2013

Statement to be Annexed to Notice….contd

New Act (section 102)• 102(2)(b)-Disclosure of %age of

shareholding in any other co. under consideration to be made if the %age of shares held in that co. is not less than 2%

• 102(4)-In case of any benefit or profit by the concerned Promoter, Directors, KMP etc which accrues due to insufficient/non-disclosure, the said person will be liable to compensate the company as specified


• Earlier for such disclosure %age was 20

Quorum for MeetingsNew Act (section 103)

• Requirement of Quorum in public co. changed

• 1000 <= 5 members• < 1000 or >= 5000-15 members• <5000- 30 Members• 103(1)(b)- for private limited

company 2 members personally present

• 103(2)-Where GM adjourned for lack of quorum, the co. to give not less than 3 days notice to members individually or by an advertisement in newspaper


• 5 members personally present in case of public co• 2 members personally

present for private co.

Chairman of MeetingsNew Act (section 104)

• The members personally present shall elect one amongst themselves to be the Chairman of meeting on a show of hands unless the AOA otherwise provides

• On a poll being demanded for this, to be taken forthwith and such other elected person to be the Chairman for the rest of the meeting



ProxiesNew Act (section 105)

• Central Government given the power to prescribe class of companies whose members shall not be entitled to appoint another member as proxy

• One person cannot represent as proxy for more than 50 members

• Proxy will no more be able to vote by show of hands

• It is to be noted that the 3rd and 4th proviso to Sec 105(1) which relates to first 2 points mentioned herein above has not been notified. Also 105(7) not notified

Old Act(Corresponding 176) • The provision of 48 hours

has been retained as it is

Restriction on voting rightsNew Act (section 106)

• All the 3 sections merged into 1• Broadly the provisions have been

retained• This section basically mentions

that a person can only be prohibited from exercising the voting rights if the call money or other sums payable by him has not been paid or in cases where the company has exercised any right to lien

• Previously, private limited companies could prescribe other restrictions, which now no more allowed

Old Act(Corresponding 181,182 & 183)

• Section 181: Restriction on exercise of voting right of members who have not paid calls etc.

• Section 182: Restrictions on exercise of voting right in other cases to be void

• Section 183: Right of member to use his votes differently

Voting by show of handsNew Act (section 107)

• 2 sections merged into 1• The provisions have been

retained• Section 107(1): At any general

meeting, a resolution put to vote of the meeting shall, unless a poll is demanded under section 109 or the vote is carried out electronically, be decided on a show of hands.

• The underlined words above, has been added in the new law


• Section 177: Voting to be by show of hands in first instance• Section 178: Chairman’s

declaration of result of voting by show of hands to be conclusive

Circulation of member’s resolutionNew Act (section 111)

• This section mentions that the eligibility criteria for members of companies with or without share capital will be as mentioned in section 100

• Eligibility reduced to 1/10 (company having share capital)

• And it lays down the process as to how and where the requisitionists need to deposit the notice etc.

• And the penalty provisions


• Section 188: Mentioned eligibility as 1/20th of voting power• The provision of

restriction of circulating statement of not more than 1000 words by the members has been dispensed with in the new law

Representation of President & Governors in meetings


• Provides that the President of India or the Governor of a State, if he is a member of company

• May appoint any person to act his representative at any meeting of a company

• That member will be deemed to be the member of the company and shall exercise the same rights and powers as the President or the Governor could have exercised

• Including the right to vote by proxy

Old Act(Corresponding 187A) • Complete provisions

retained

Representation of Corporations at meetings of companies and of creditors

New Act (section 113)• Provides that if a body corporate is a

member of company, it can authorise any person to act as its representative at any meeting of a company

• Such authorisation to be given by way of board meeting resolution

• The authorised person to exercise the same rights and powers, including the right to vote by proxy and by postal ballot

• The underlined words have been added in the section

• Sec 113(1)(b) not notified


• Complete provisions retained

Ordinary & Special Resolutions


• Provides that a resolution shall be an ordinary resolution if the votes cast in favour exceeds the votes cast against the resolution, including the casting vote, if any

• A resolution shall be a special resolution when it is specified to be considered that way in the notice and the votes cast in favour is 3 times the votes cast against

• The word ‘electronically’ has been introduced in section 114(1) and (2)

Old Act(Corresponding 189) • Complete provisions

retained

Resolutions passed at adjourned meeting


• A resolution passed at an adjourned meeting of:

a. Company or b. The holders of any class of shares c. BOD Shall for all purposes be treated as

passed on the date on which it is passed and is not supposed to be deemed to be passed at any earlier date


• Complete provisions retained

Chapter – VIIIDeclaration & Payment of Div• Sections ranging from 123 to 127 • Total 5 sections• Out of which 1 section has been made applicable from 12.09.13• The notified section is 127

Punishment for failure to distribute dividends


• Dividend to be paid within 30 days from declaration date

• This section prescribes penalty provisions for the directors, who knowingly is party to the default

• The punishment is imprisonment which may extend to 2 years and with fine not less than Rs.1000 for every day of continuing default

• 5 points have been mentioned when no offence will be deemed to have been committed

Old Act(Corresponding 207) • The heading read as ‘Penalty

for failure to distribute dividends within 30 days

• Provisions has been retained• In the heading of the

section, the word ‘punishment’ has replaced by the word ‘penalty’

• It is to be noted that in the new law, imprisonment has been reduced from 3 to 2 years

Chapter – IXAccounts of Companies• Sections ranging from 128 to 138 • Total 11 sections• Out of which 1 section has been made applicable from 12.09.13• The notified section is 133

Central Government to prescribe accounting standards


• The CG* may prescribe the standards of accounting or any addendum thereto

• As recommended by the Institute of Chartered Accountants of India

• The CG would consult with NFRA* and examine the recommendations made by ICAI

• CG means Central Government• NFRA means National Financial

Reporting Authority

Old Act(Corresponding 211(3C)) • There was a mention of

the National Advisory Committee on Accounting Standards

Chapter – XAudit & Auditors• Sections ranging from 139 to 148 • Total 10 sections• Out of which ‘NO’ section has been made applicable from 12.09.13

Chapter – XIAppointment & Qualificatn of Dirs

• Sections ranging from 149 to 172• Total 24 sections• Out of which 3 sections has been made applicable from 12.09.13• The notified sections are 161, 162 and 163

Appointment of additional director, alternate director & nominee director

New Act (section 161)• All the 3 sections merged into 1• Section 161(1) deals with addl dir

(AD): BOD can appoint AD’s. Person who fails to get appointed in a general meeting will not be eligible to be appointed as AD

• Section 161(2) deals with alternate dir: BOD may appoint any person to act as alternate director for any director during his absence for a period not less than 3 months from India

• This person should not be holding any alternate directorship for any other director in the company

Old Act(Corresponding 260,262,313)

• Section 260: Additional Directors• Section 262: Filling of

casual vacancies among directors• Section 313:

Appointment and term of office of alternate directors

Appointment of additional director, alternate director & nominee director…..contd


• To get appointed as alternate director to any independent director, the incumbent also have to satisfy the conditions laid down for independent directors

• The period upto which alternate director remains in office has been specified

• Section 161(3) deals with nominee dir: BOD may appoint any person as a director nominated by any:

a. institution b. any agreement c. CG or the State Government





Appointment of additional director, alternate director & nominee director…..contd

New Act (section 161)• Section 161(4) deals with filling up of

casual vacancies: In case of public companies whose office of directors are vacated before expiry of his term, the resulting vacancy can be filled by the BOD

• It is to be noted that provisions of section 161(2) relating to alternate directors has not been notified yet





Appointment of directors to be voted individually

New Act (section 162)• A single resolution cannot be passed

for appointment of more than 1 director

• Unless an approval for en-bloc appointment has been resolved at a meeting without a single vote cast against it

• In the new law, this section has been made applicable to private limited companies also

• In 1956 Act, it was applicable to public company and a private company which is a subsidiary of a public company


• Broadly, the provisions has been retained

Option to adopt principle of proportional representation for appointment of directors

New Act (section 163)• Provides that the AOA of a company

may provide for appointment of not less than 2/3rd of the total number of the directors in accordance with the principle of proportional representation

• In the new law, this section has been made applicable to private limited companies also

• In 1956 Act, it was applicable to public company and a private company which is a subsidiary of a public company


• Broadly, the provisions has been retained

Chapter – XIIMeeting of Board & its Powers• Sections ranging from 173 to 195• Total 23 sections• Out of which 9 sections has been made applicable from 12.09.13• The notified sections are 176, 180, 181, 182, 183, 185, 192, 194 and

195

Defects in appointment of directors not to invalidate actions taken


• Any act done by a person as a director shall not be invalid if it is subsequently noticed that his appointment was invalid

• By reason of any: a. Defect or b. Disqualification c.Termination by virtue of any

provision in the Act or in AOA• The further acts of directors will be

considered as invalid after his appointment have been so noticed by the company


• Provisions have been retained• The word ‘discovered’ in

the old act has been replaced with ‘noticed’ in the new act

Restrictions on powers of BoardNew Act (section 180)

• Certain powers which can be exercised by the BOD with the approval of general meeting, are now applicable to private limited companies also

• The word, ‘undertaking’ and the expression, ‘substantially the whole of the undertaking’ has been defined

• Some powers now can be exercised by the BOD after passing special resolution vis-à-vis ordinary resolution in the old law

• Contribution to charitable funds as mentioned in old section 293(1)(e) has been removed and shifted to a new section

Old Act(Corresponding 293) • Quite a number of changes

has been made

Company to contribute to bonafide and charitable funds etc.


• The BOD may contribute to bonafide charitable and other funds

• Provided that, prior permission by way of resolution at a general meeting is obtained

• This permission only required if the amount, the aggregate of which, in any financial year, exceeds 5% of its average net profits for the 3 immediately preceding financial years

Old Act(Corresponding 293(1)(e))

• Few changes

Prohibitions & restrictions regarding political contributions New Act (section 182)

• Manner and limits pertaining to political contributions has been laid in the section

• What will be considered as a political contribution has been mentioned

• The way the said contribution needs to be disclosed in the profit & loss account of the company has been mentioned too

• Punishment for contravention has been increased

• ‘Political party’ means a political party registered u/s 29A of the Representation of the People’s Act, 1951


• Few changes• 293A(1)(b)(ii) & 293A(2)(b)

had a mention of contribution to any person for any political purpose. That is no more allowed in the new law

• Proviso to 293A(2) laid the limit of 5% which has been increased to 7.5% in the new law

Power of Board and other persons to make contributions to National Defence Fund etc.


• Company can contribute such amount as it thinks fit to the National Defence Fund

• Or to any other Fund approved by the CG for the purpose of national defence

• The company to disclose in its profit and loss account, the total amount of contribution during the financial year to which it relates

Old Act(Corresponding 293B


Loan to Directors etc.New Act (section 185)

• 2 sections combined into 1• 185(1): Provisos - Circumstances

and manner in which a company shall advance any loan to any of its directors

• Or to any other person, in whom the director is interested

• The expression ‘to any other person in whom director is interested’ has been defined

• The section not only mentions loan but also guarantee or any security in connection with loan

Old Act(Corresponding 295, 296)

• 295: Loans to directors etc.• 296: Application of

section 295 to book debts in certain cases• Most important change:

The new act makes section 185 applicable to private limited companies also

Restriction on non-cash transactions involving directors


• This section regulates the arrangements where the:

a. Director of the company or b. Director of its holding

company c. Director of its subsidiary

company d. Director of its associate

company acquires assets for

consideration other than cash, from the company

Old Act(Corresponding NIL)

• New Provision

Prohibition on forward dealings in securities of company by director or KMP


• It seeks to prohibit whole time director or any of its KMP • From buying certain kinds of

future contracts• In relation to the securities of

the company


• New Provision

Prohibition on insider trading of securities


• It seeks to prohibit directors or any of its KMP • To deal in securities of a

company, or counsel, procure or communicate• Directly or indirectly• About any non-public price

sensitive information to any person


• New Provision

Chapter – XIIIAppointment & Remuneration of Managerial Personnel• Sections ranging from 196 to 205• Total 10 sections• Out of which 1 section has been made applicable from 12.09.13• The notified section is 202

Compensation for loss of office of managing or whole-time director or manager


• Manner and circumstances in which any managing director or whole-time director or manager, shall be entitled to receive payment by way of compensation:

- for loss of office or - as consideration for retirement from

office or - in connection with such loss or

retirement• 202(2) lays down the cases when the

payment by way of compensation will not be allowed

• 202(3) specifies the quantification of such compensation



Chapter – XIVInspection, Inquiry & Investigation• Sections ranging from 206 to 229• Total 24 sections• Out of which ‘NO’ section has been made applicable

from 12.09.13

Chapter – XVCompromise, Arrangement & Amalgamation• Sections ranging from 230 to 240• Total 11 sections• Out of which ‘NO’ section has been made applicable

from 12.09.13

Chapter – XVIPrevention of Oppression & Mismanagement• Sections ranging from 241 to 246• Total 6 sections• Out of which ‘NO’ section has been made applicable

from 12.09.13

Chapter – XVIIRegistered Valuer• Section 247• Total 1 section• This section has NOT been made applicable from

12.09.13

Chapter – XVIIIRemoval of name of companies from the Register of Companies• Sections ranging from 248 to 252• Total 5 sections• Out of which ‘NO’ sections has been made applicable

from 12.09.13

Chapter – XIXRevival & Rehabilitation of sick companies• Sections ranging from 253 to 269• Total 17 sections• Out of which ‘NO’ sections has been made applicable

from 12.09.13

Chapter – XXWinding Up• Sections ranging from 270 to 365• Total 96 sections• Out of which ‘NO’ sections has been made applicable from 12.09.13• This chapter has been divided into 3 parts• Part I – Winding up by the Tribunal• Part II – Voluntary winding up• Part III – Provisions applicable to every winding up

Chapter – XXICompanies authorised to register under this Act • Sections ranging from 366 to 378• Total 13 sections• Out of which ‘NO’ sections has been made applicable

from 12.09.13• This chapter has been divided into 2 parts• Part I – Companies authorised to register under this Act• Part II – Winding up of unregistered companies

Chapter – XXIICompanies incorporated outside India• Sections ranging from 379 to 393• Total 15 sections• Out of which 4 sections has been made applicable from 12.09.13• The notified sections are 379, 382, 383 and 386

Application of Act to foreign companies


• If not less than 50% of the paid-up capital of a foreign company

• Is held by citizen(s) of India, companies or bodies corporate registered in India

• Then such a foreign company will have to comply with Chapter XXII

• And comply with other provisions as if it was a company incorporated in India


• Provisions retained• Interestingly, the words

used in section 591(2), ‘having an established place of business in India’ has been discontinued in the new law

Display with name etc. of foreign company

New Act (section 382)• Every foreign company:• 383(a): conspicuously exhibit, name,

country in which incorporated in english and also in local use language, outside of its every office

• 383(b): same in all business letters, bill heads etc.

• 383(c)(i): If its liability is limited, cause notice of the same to be stated in every prospectus issued and official publications in legible english characters

• 383(c)(ii): And also of its limited liability outside its every office


• Broad provisions retained• 595(1)(a) mentioned that

every foreign company shall in every prospectus inviting subscriptions in India for its shares or debentures, state the country in which the company is incorporated…this doesnot find place in the new law

Service on foreign companyNew Act (section 383)

• Any process, notice or other document

• Required to be served on a foreign company

• Shall be deemed to be sufficiently served

• If addressed to any person whose name and address have been delivered to the ROC u/s 380

• And left at, or sent by post• To that address• Or sent by electronic mode


• The matter in provisos, ‘a’ and ‘b’ to section 596 has not been retained• The word ‘by electronic

mode’ has been added to section 383 in the new law

InterpretationNew Act (section 386)

• For the purposes of Chapter XXII: - ‘certified’ means certified in the

prescribed manner to be a true copy or a correct translation

- ‘director’ includes any person in accordance to whose directions or instructions the BOD is accustomed to act

- ‘place of business’ includes a share transfer or registration office

• It is to be noted that sub-clause (a), i.e. the meaning of ‘certified’ has yet not been notified


• The interpretation of the words ‘Prospectus’ and ‘Secretary’ has been dropped in the new law

Chapter – XXIIIGovernment Companies• Sections ranging from 394 to 395• Total 2 sections• Out of which 1 section has been made applicable from 12.09.13• The notified section is 394

Annual reports on Government Companies


• 394(1): Where the CG is a member of a government company

• The CG shall cause to prepare the annual report on the working and affairs of the company

• Along with the auditor’s report and comments of the Comptroller and Auditor General of India

• And the same be laid before both the Houses of Parliament

• If State Government is a member, same provisions, just that the reports etc. be placed before both the Houses of the State Legislature


• Provisions retained• The language in the new

law has been made simpler

Chapter – XXIVRegistration offices & fees• Sections ranging from 396 to 404• Total 9 sections• Out of which ‘NO’ section has been made applicable from 12.09.13

Chapter – XXVCompanies to furnish information or statistics• Section 405• Total 1 section• This section has been made applicable from 12.09.13

Power of CG to direct co. to furnish information or statistics


• 405(1): CG may require companies to furnish such information within such time as specified in its order

• 405(2): Every such order shall be published in the Official Gazette and may be addressed to companies in such manner as the CG may think fit

• 405(3): The CG for the purpose of satisfying itself, may seek for production of such records etc.

• 405(4): Penal provisions• 405(5): Applicable to foreign

companies in relation to business carried on in India


• Broad provisions retained• The provisions in section

615(5) relating to the power to order inquiry where the said information is not provided has been done away with

Chapter – XXVINidhi• Section 406• Total 1 section• This section has NOT been made applicable from 12.09.13

Chapter – XXVIINational Company Law Tribunal and Appellate Tribunal• Sections ranging from 407 to 434• Total 28 sections• Out of which 8 sections has been made applicable from 12.09.13• The notified sections are 407, 408, 409, 410, 411, 412, 413 and 414

DefinitionsNew Act (section 407)

• It seeks to provide the definitions of:

a. Chairperson b. Judicial Member c. Member d. President e. Technical Member

Old Act(Corresponding 10FD & 10FR)

• In the new law, the definitions of Chairperson, Member and President has been introduced

Constitution of NCLTNew Act (section 408)

• The CG shall, by notification, constitute, w.e.f. such date, as may be specified therein a Tribunal known as NCLT• NCLT to consist of a President

and such number of Judicial and Technical members, as the CG may deem necessary

Old Act(Corresponding 10FB & 10FC)

• In the new law, the upper limit of 62 has been done away with

Qualification of President & Members of Tribunal


• The eligibility criterias has been laid out for:

a. President b. Judicial Member c. Technical Member

Old Act(Corresponding 10FD)

• In the new law, the eligibility criteria for appointment of President, Judicial member, Technical member have changed

Constitution of Appellate TribunalNew Act (section 410)

• The CG shall, by notification, constitute, w.e.f. such date as may be specified therein, an Appellate Tribunal to be known as the National Company Law Appellate Tribunal• Consisting of: a. a chairperson and b. such number of Judicial and

Technical members, not exceeding 11

Old Act(Corresponding 10FR)

• In the new law, the limit of members which was 2 has been increased to 11

Qualification of Chairperson and members of Appellate Tribunal


• Qualifications of: a. Chairperson b. Judicial Member c. Technical Memberhas been laid out.

Old Act(Corresponding 10FR)

• In the new law, the qualifications for the Chairperson, Judicial member and the Technical member for NCALT has been modified

Selection of members of Tribunal & Appellate Tribunal


• 412(1): President of the Tribunal and the Chairperson & Judicial Members of the Appellate Tribunal shall be appointed after consultation with the Chief Justice of India

• 412(2): The Members of the Tribunal and the Technical Members of the Appellate Tribunal to be appointed on the recommendation of the Selection Committee

• 412(3): The secretary of MCA shall be the convener of the Selection Committee

Old Act(Corresponding 10FX)

• In the new law, the selection process has been made stringent.

• Also the composition of the selection committee has been changed

• In the old law, the time period within which the casual vacancy needs to be filled in was specified

• Which is not no in the new law

Term of office of President, Chairperson and other Members


• 413(1): President and every other Member of the Tribunal shall hold office for 5 years + 5 years (on reappointment)

• 413(2): Age limit for the Members of the Tribunal:

President: 67 years Any other Member: 65 years Lower benchmark age for selection: 50 • 413(3): Chairperson or a Member of NCALT

shall hold office for 5 years + 5 years (on reappointment)

• 413(4): Age limit for the Members of the Appellate Tribunal:

Chairperson: 70 years Any other Member: 67 years Lower benchmark age for selection: 50

Old Act(Corresponding 10FT & 10FE)

• Quite a number of changes

Salary, allowances & other terms and conditions of service of MembersNew Act (section 414)

• The: salary allowances and other terms and conditions of • Service of the Members of the Tribunal

and the Appellate Tribunal shall be• Such sum as may be prescribed• And that such sum or the terms etc.

shall be varied to their disadvantage after their appointment

Old Act(Corresponding 10FG & 10FW)

• No change

Chapter – XXVIIISpecial Courts• Sections ranging from 435 to 446• Total 12 sections• Out of which 5 sections has been made applicable from 12.09.13• The notified sections are 439, 443, 444, 445 and 446

Offences to be non-cognizableNew Act (section 439)

• 439(1): Every offence except the ones mentioned in 212(6) shall be deemed to be non-cognizable offence

• Section 212 deals with investigation into affairs of company by Serious Fraud Investigation Office. 212 is a new provision

• 439(2): Court shall take cognizance of any offence under this Act only when the complaint in writing has been made by the ROC, a shareholder or by a person authorised by the CG

• 439(3): Offence relating to issue and transfer of securities and of non-payment of dividend, on the complaint by SEBI


• Quite a number of changes

Power of CG to appoint company prosecutorsNew Act (section 443)• The CG may appoint • One or more persons• As Company Prosecutors• For the conduct of prosecutions arising

out of this Act• And the persons so appointed • Shall have the powers and privileges

conferred by the Criminal Procedure Code

• On Public Prosecutors • Appointed under section 24 of the

Code

Old Act(Corresponding 624A) • The change is: where the

CG appoints any Company Prosecutors, they shall have the same powers and privileges conferred on Public Prosecutors by the Criminal Procedure Code under section 24 of the Code instead of section 492 of the code, as provided in the old law

Appeal against acquittalNew Act (section 444)

• The CG may• In any case arising under this Act• Direct any Company Prosecutor or

authorise any other person• To present an appeal from an Order of

Acquittal• Passed by any Court other than a High

Court

Old Act(Corresponding 624B) • No change

Compensation for accusation without reasonable cause


• The provisions of section 250 of the Code of Criminal Procedure

• Shall apply mutatis-mutandis• To compensation for accusation

without reasonable cause• Before the Special Court or the

Court of Session


• Section 625 is quite long• The old law specifically

makes section 250 of the Criminal Procedure Code, non applicable

Application of FinesNew Act (section 446)

• The Court imposing any fine under this Act

• May direct that the whole or any part thereof

• Shall be applied towards payment of cost of proceedings or

• Towards payment of reward to person• On whose information the proceedings

were instituted


• Provisions retained• Just that there was a

power which was also given to the Tribunal along with the Court, in the old law, which has been removed• The new law only

mentions, Court

Chapter – XXIXMiscellaneous• Sections ranging from 447 to 470• Total 24 sections• Out of which 12 sections has been made applicable from

12.09.13• The notified sections are 456, 457, 458, 459, 460, 461, 462,

463, 467, 468, 469 and 470

Protection of Action Taken on Good Faith


• No suit, prosecution or other legal proceedings

• shall lie against the Government or any other person authorised by the government

• For acts done or intended to be done in good faith



Non Disclosure of Information in Certain Cases


• The registrar, any officer of the government or any other person

• Shall not be compelled to disclose to any court etc

• The source from where he got any information which led the CG to order an investigation u/s 210 or

• Has been material in connection with such investigation

Old Act(Corresponding 635AA) • Provisions retained

Delegation by CG of its powers & functions


• 458(1)-CG may delegate any of its powers and functions under this act other than the power to make rules

• By way of notification• The delegation could be made to such

authority or officer as prescribed• The powers to enforce the provisions in

Sec 194 and 195 relating to forward dealing and insider trading to be delegated to SEBI only

• 458(2)-Copy of every notification as soon as it is issued be laid before each house of parliament


• Quite a number of changes• CG can delegate its power

and functions under all provisions of the Act in the new law • In the old law no

delegation was allowed in some specified sections

Powers of CG or Tribunal to accord approval etc


• While according approval, sanction, consent, confirmation or recognition to any matter the CG or the Tribunal give any direction or grant any essentials in relation to any matter

• Every application made to the CG or the Tribunal shall be accompanied by such fees as may be prescribed

Old Act(Corresponding 637A) • Provisions Retained

Condonation in delay in certain casesNew Act (section 460)

• 460(a): If any application required to be made to the CG under this Act

• Has not been made within the specified time

• CG may condone the delay• By citing the reasons to be recorded in

writing• 460(b): Where any document required

to be filed with the ROC under this Act• Has not been filed within the specified

time• CG may condone the delay• By citing the reasons to be recorded in

writing

Old Act(Corresponding 637B)


Annual Report by Central Government


• The CG• Shall cause a general annual report• On the working and administration of

this Act• To be prepared and laid before each

House of Parliament• Within 1 year • Of the close of the year to which the

report relates

Old Act(Corresponding 638) • Provisions Retained

Power to exempt companies from provisions of this Act


• The CG may in the public interest• By way of notification• Direct that any of the provisions of this

Act shall not apply to such class or classes of companies or

• Shall apply with such exceptions, modifications etc. as may be specified in the notification

• A copy of the notification to be aid in both the Houses of the Parliament

Old Act(Corresponding 620) • In the old law, the power

to exempt could have been exercised in relation to Government Companies only

Power of Court to grant relief in certain cases


• The Court has the power to grant relief to any officer of a Company in respect of the negligence, default, breach of duty, misfeasance or breach of trust • Provided that he has acted

honestly and reasonably and having regard to all the circumstances of the case

Old Act(Corresponding 633) • Provisions retained

Power of CG to amend schedulesNew Act (section 467)

• CG may by notification alter any of the regulations, rules, tables, forms and other provisions contained in any of the schedules to this Act

• Any such alteration shall come into force on the date of notification, unless the notification otherwise directs

• Notification to be laid immediately before each House of Parliament

• The manner of laying the same has been laid in the Act


Power of CG to make rules relating to winding up


• CG may make rules relating to matters of winding up of companies• The rules made by the Supreme

Court shall continue to be in force till the CG make rules


Power of CG to make rulesNew Act (section 469)

• The CG may make rules for carrying out the provisions of this Act

• By way of notification• Any rule may provide that a

contravention to the rules shall be punishable with fine which may extend to Rs.5000 and Rs.500 per day for continuing default

• Every rule to be laid before both the Houses of Parliament

• Manner of laying in both the Houses has been mentioned in the Act

Old Act(Corresponding 642) • Few changes

Power of remove difficultiesNew Act (section 470)

• If any difficulty arises in giving effect to the provisions of this Act

• The CG may, by order in the Official Gazette

• Make such provisions for removing the difficulty

• But no such order can be made after the expiry of 5 years from the date of commencement of section 1 of this Act

• Every such Order will have to be laid before both the Houses of Parliament

Old Act(Corresponding NIL) • NEW provision

THERE ARE TOTAL 29 RULESOut of which:1. 16 Rules have been placed for public comments on 09.09.2013. Last date for receiving comments is 08.10.20132. 9 Rules have been placed for public comments on 20.09.2013. Last date for receiving comments is 19.10.20133. Some Rules have been placed on 22.10.2013

First set of draft rules• The draft Rules for 16 chapters are for:

1. Chapter I - Preliminary

2. Chapter II - Incorporation of Company and Matters Incidental Thereto

3. Chapter VI - Registration of Charges

4. Chapter VIII - Declaration and Payment of Dividend

First set of draft rules….contd 5. Chapter IX - Accounts of Companies

6. Chapter X - Audit and Auditors

7. Chapter XI - Appointment and Qualification of Directors

8. Chapter XII - Meeting of Board and its Powers

9. Chapter XVI - Prevention of Oppression & Mismanagement

10. Chapter XVIII - Removal of Name of Companies from the Register of Companies

11. Chapter XIX - Revival and Rehabilitation of Sick Companies

First set of draft rules….contd

12. Chapter XXII - Companies Incorporated Outside India

13. Chapter XXIV - Registration Offices and Fees

14. Chapter XXVI - Nidhi

15. Chapter XXVII - National Company Law Tribunal and Appellate Tribunal

16. Chapter XXIX - Miscellaneous

Second set of draft rules

• The draft Rules for 9 chapters are for:

1. Chapter III - Prospectus and Allotment of Securities

2. Chapter IV - Shares Capital and Debentures

3. Chapter VII - Management and Administration

4. Chapter XIII - Appointment and Remuneration of Managerial Personnel

Second set of draft rules…contd 5. Chapter XV - Compromises, Merger and Amalgamations

6. Chapter XVII - Registered Valuers

7. Chapter XXI - Companies authorized to register under this Act

8. Chapter XXVII - National Company Law Tribunal and Appellate Tribunal

9. Chapter XXVIII - Special Courts (Mediation and Conciliation Panel)

Third set of draft rules

• The draft Rules are for:

1. Chapter V - Deposits

2. Chapter XIV – Inspection, Inquiry and Investigation

3. Chapter IX - Provisions with respect to NFRA

NEW FORMS• Many new forms have been included in the Rules

• Now the information required in the forms is more detailed, in order to ensure clarity and further transparency

• A note has been inserted at the bottom of the forms for making the officers of the companies aware of the punishment for false statement and certification

Disclaimer• The contents of this presentation is based on my

understanding and interpretation of the relevant law. The contents are summarized. Please study the provisions in detail before taking any decision on the basis of the information provided in this presentation.

Companies Act, 2013 Detailed analysis of 98 sections effective 12.09.2013 CS Mamta Binani

Documents

Transcript of Companies Act, 2013 Detailed analysis of 98 sections effective 12.09.2013 CS Mamta Binani