MCA’s three-stage plan to execute remaining 40% of new Companies Law

The min­istry is rolling out a three-stage plan for imple­men­ta­tion of the remain­ing 40% pro­vi­sions of the new Com­pa­nies Act and it wants to noti­fy most of the remain­ing sec­tions by the end of this year to facil­i­tate tran­si­tion to new law. In the next six months, the min­istry plans to noti­fy sec­tions relat­ed to val­u­a­tion, which includes reg­is­ter­ing cer­ti­fied val­uers and strik­ing off names of companies.

In the sec­ond phase, 37 sec­tions deal­ing with pro­vi­sions of Com­pa­ny Law Board will be noti­fied by the end of this year. In the final phase, 136 sec­tions relat­ed to Nation­al Com­pa­ny Law Tri­bunal, which is cur­rent­ly stuck because of legal hur­dles, will be noti­fied. At present around 60% (283 sec­tions) out of the total 470 sec­tions of the new act has been announced.

So far, the min­istry has brought pro­vi­sions relat­ed to rais­ing of funds, gov­er­nance of com­pa­nies, accounts, audit and audi­tors, inspec­tion and inves­ti­ga­tion of com­pa­nies, incor­po­ra­tion and oth­er mis­cel­la­neous pro­vi­sions into force.

Sec­tions relat­ing to des­ig­nat­ing spe­cial judges for com­pa­ny relat­ed mat­ters are expect­ed to be noti­fied before June. Under the Com­pa­nies Act 2013, a con­cept of reg­is­tered val­uer has been intro­duced to pro­vide for a prop­er mech­a­nism for val­u­a­tion of var­i­ous assets and lia­bil­i­ties relat­ed to a com­pa­ny and to stan­dard­ise procedure.

So far the min­istry has issued 45 cir­cu­lars, 15 amend­ments to rules and sev­en ‘removal of dif­fi­cul­ties’ orders.