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.

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