Clarification on applicable sections of companies acts for. The companies act was, in many ways, perceived as a reaction to the satyam scam which uncovered several aspects of corporate fraud that inter alia diminished minority shareholder rights. Repeal of certain enactments and savings 1 the companies act, 1956 and the registration of companies sikkim act,1961 hereafter in this section referred to as the repealed enactments shall stand repealed. In section 23 of the principal act, after subsection 2 and before the explanation. Section 1 of the companies act 20 states that this section comes into force at once and the remaining provisions of this act shall come into force. Read both companies act 201956 in a unique manner with inbuilt links to rules, sections etc. Public financial institutions under section 4a of the.
The company law board or the regional director, as the case may be, while dealing with a proposal for the compounding of an offence for a default in compliance with any provision of this act which requires a company or its officer to file or register with, or deliver or send to, the registrar any return, account or other document, may, direct, by order, if it or he thinks fit to do so, any. The central government may, by notification in the official gazette, exempt any class of companies from compliance with any of the requirements in schedule vi if, in its opinion, it is necessary to grant the exemption in the i public interest. Companies act, 1956 means companies act, 1956 without reference to the provisions thereof that have ceased to have effect upon notification of the sections of the companies act, 20 along with the rules made thereunder. Supplementary on the notified sections of the companies act, 20. The last date for submission of applications for the posts of cgm, gm, dgm in nfra on. Provisions of other acts referred to in companies act, 20.
In respect of sections of the companies act, 20 which have not been notified, applicable sections of companies act, 1956. Definitions of company, existing company, private company and public company 4. The companies act, 20 has been notified in the official gazette on 30th august, 20. The index contains the latest amendments, list of all sections including sections which has not yet been notified, schedules, and rules made under the companies act, 20. Table containing provisions of companies act, 20 as notified up to date and corresponding provisions thereof under companies act, 1956 note. Supplementary on the notified sections of the companies act, 20 introduction need for the new legislation.
Table containing provisions of companies act, 20 as. Every company is required to follow the company law otherwise it will be treated as punishable offence under the companies act, 1956. Notification of various sections under the companies act, 20 december 15, 2016 in brief recently, the ministry of corporate affairs mca has notified the muchawaited sections in the companies act ca, 20 dealing with amalgamation, compromise, arrangement, liquidation and winding up. Clarification on applicable sections of companies acts. May 04, 2020 download index part of ebook on companies act 20. Mca vide notification dated 05 th july, 2018 notified 1 section of companies.
The gazette of india extraordinary part ii section i published by authority no. While the 20 act is already operational and became largely effective from 1 april 2014, the sections relating to nclt and nclat and corresponding rules were not notified pending their constitution. Repeals and savings the companies act 20 will come into force on a date notified for the said purpose by the central government. May 19, 2016 yes, some sections of companies act 1956 are still applicable. The companies amendment bill, 2016 is also before the parliament where. Notification of various under the companies act, 20 sections. Be it enacted by parliament in the sixth year of the republic of india as follows.
There are 470 sections in the companies act, 20 but various provisions of the act were notified in the last two and a half year in a phased manner. A new term of oneperson company is included in this act that will be a private company and with only 98 provisions of the act notified. This is the basic law which governs the creation,continuation, the winding up of companies and also the relationships betweenthe shareholders, the company, the public and the government. This study material is based on those sections of the companies act, 20 and the rules made there under which have been notified by the government of india and came into force w. This is so because the government is yet to set bodies like national company law tribunal and the relevant rules need to be notified. This an act to consolidate and amend the law relating to companies. By combined reading of sections 271 and 287 of the act, it is not clear whether a private company which is a subsidiary of a foreign body corporate will be deemed to be a public company and the law will be applicable to it as such. The companies act, 20 passed by the parliament has received the assent of the president of india on 29th august, 20.
List of sections of companies amendment act, 2017 notified. Be it enacted by parliament in the sixth year of the republic of india as follows 1. Applicability of section 372a companies act 1956 abcaus. The companies act, 1956 existing act contains 658 sections and xv schedules. Companies act, 1956 dealt with voluntary winding up and there were 20 sections sections 304 to 323 in the companies act, 20 dedicated especially to voluntary winding up besides the general provisions relating to every type of winding up. Until the nclt and the nclat were constituted, the clb and the high court continued to exercise their powers under the companies act, 1956 1956 act.
First notes mca notified certain provisions of the. Provided further that until a date is notified by the central government under subsection. The central government constitutes nclt and nclat and. Notified sections of companies amendment act, 2017 taxguru. Provided that the provisions of part ix a of the companies act, 1956 shall be applicable. Section 263a sections 177, 255, 256 and 263 not to apply in relation to companies not carrying business for profit, etc. Different dates could be appointed for different provisions of the amendment act, 2017.
Notified sections of companies amendment act, 2017 updated. Companies act, 1956 bare acts law library advocatekhoj. The act, has lesser sections as the companies will be governed more through the rules which are yet to be prescribed. An act to consolidate and amend the law relating to companies and certain other associations. The companies act 20 contains 470 sections under 29 chapters with seven schedules. Companies act, 1956 1 of 1956 so repealed under section 465 of. Additionally, mca issued amendments to certain rules under the companies act, 20 20 act. Draft this set of articles of association was to be adopted. The implementation of the new company law is on fasttrack with the ministry of corporate affairs mca notifying 98 sections and. With reference to commencement notifications dated january 23, 2018, february 09, 2018, may 07, 2018, june, 2018, notification no.
Chapter xxi part i companies authorised to register under this act. The provisions of companies act, 1956 is still in force. List of sections of companies amendment act, 2017 notified so far. The constitution of the nclt and nclat to exercise and discharge the powers and functions as conferred on it under the 20 act. The companies act, 20 the companies act, 1956 old company law is set to be replaced by the companies act, 20 new company law, which has already been passed by the parliament of india. Notification of various sections under the companies act, 20 pwc. Sep 15, 2016 company law 1956 is the law which applies to all type companies whether it is public or private company. Nothing in sections 108a to 108d to apply to government companies, etc. Frequently asked questions on the companies act, 20. The act consolidates and amends the law relating to companies. Summary of the notified provisions of the companies act, 20. As of the date of this publication, 99 sections have been notified and a few circulars have been issued clarifying the applicability of these.
Winding up legal position under companies act, 20 vis. An act to consolidate and amend the law relating to companies. In the absence of this relevant sections of the new act cannot be implemented. Recently, mca through its notifications dated 5 july 2018 and 27 july 2018 notified certain sections of the amendment act, 2017. Any such exemption may be granted either unconditionally. Companies act, 20 have been notified vide notification no. Complete list of sections of companies act, 20 corporate. The companies act, 20 has been enacted to consolidate and amend the law relating to the companies. The ministry of corporate affairs has notified 98 sections of the new companies act, 20. The notes below are prepared based on the provisions of the act. Notification dated 12 th september, 20 issued by ministry of corporate affairs. Jul 10, 2018 notifications notifying applicability of sections of companies amendment act, 2017 mca vide notification dated 05 th july, 2018 notified 4 section of companies amendment act, 2017.
In the below table, i have summarized the mapping of the newly notified 98 sections with the old provisions of the companies act 1956. Companies act, 1956 legal definition of companies act. In order to maintain harmony with regard to applicability of section 372a of the companies act, 1956 till the same is repealed and section 185 of the companies act, 20 is notified, it is hereby clarified that any guarantee given or security provide by a holding company in respect of loans made by a bank or financial institution to its subsidiary company, exemption as provided in clause d. Share capital to stand increased where an order is made under section 814.
In this act, unless the context otherwise requires, 1 abridged prospectus means a memorandum containing such salient features of a prospectus as may be prescribed. The passage of the bill, which is spread across nearly 30 sections and over 300 pages, was widely welcomed by stakeholders, including industry bodies, political leaders and consultants. The last date for submission of applications for the posts of agm, manager and assistant manager. Companies in accordance with section 149 of the companies act. Be it enacted by parliament in the sixtyfourth year of the republic of india as follows. Clause 65 explanation to section 192a nil clause 66 233 nil s. Chapter xviii removal of names of companies from the register of companies. Sep 20, 20 the existing companies act, 1956 has been amended at least 25 times in the past 57 years, with many of its provisions found to be outdated and inadequate. The indian companies act, 1956 basic concept the word company. The companies act 20 is an act of the parliament of india on indian company law which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company. The companies act, 20 has been notified in the official gazette on 30th august, 20 but the provisions of this act shall come into force on such dates as the central government may notify in the. Act means the i companies act, 20, and the rules and clarifications issued thereunder to the extent in force pursuant to the notification of the notified sections. While there is no definition of the word compounding provided either in the act 1956 or the act 20, however, the legal meaning of compounding is doing good the defaultnoncompliance. The companies registered under the companies act, 1956 or the earlier companies act.
Section 264 consent of candidate for directorship to be filed with the company and consent to act as director to be filed with the registrar. In the companies act, 20 hereinafter referred to as the principal act, in section 2, in. In addition to the above, certain winding up sections were also notified by mca. The companies incorporated by means of statute of special act of the parliament or any state legislative eg. These sections have come into effect from 12th september 20. The companies act, 20 companies act is one of the landmark legislations enacted in recent years to bring forth transparency, ease of doing business and protecting rights of minority shareholders. List of notified sections of companies amendment act. Companies act, 1956 1 of 1956 or the securities and exchange board of india act, 1992 15 of 1992 or the depositories act, 1996 22 of 1996 shall have the same meanings respectively assigned to them in those acts. The act or the said act i act means the notified sections of the companies act, 20 including the rules, regulations, circulars, notifications, and orders made there under as amended, modified or reenacted from time to time. All 438 sections of companies act are notified by the ministry of corporate affairs mca and majority of the rules to the various chapters sections of the companies act, 20. Section subject section 33 initiation of liquidation. The 20 act is divided into 29 chapters containing 470 sections as against 658 sections in the companies act, 1956 and has 7 schedules. Most of the 98 sections including the definitions that have been notified yesterday are either simple and straight forward provisions or are similar to their counterparts in companies act, 1956, barring certain important definitions such as private company, public company, interested director and provisions relating to.
Companies amendment act, 2017 was assented by honble president on the 3rd january, 2018 and after that three notification been issued by which various section of companies amendment act, 2017 been notified which are as under. Clarification on dispatch of notice under section 622 of companies act, 20 by listed companies. The new act, which replaces the companies act of 1956, comes into force from 1 april. Some of the provisions of the act have been implemented by a notification published on 12th september, 20. The note discusses the aforesaid provisions in brief. Supplementary on notified sections of companies act,20 for december 2014 cma examination academics department, the institute of cost accountants of indiastatutory body under an act of parliament page 3 point of comparison in respect to new law under the 1956 act the salient features of a prospectus were to be prescribed by the. Provisions akin to section 47 of the companies act, 1956 also does not exist under the new act. The companies act 20 has 464 sections and 7 schedules. In this act, unless the context otherwise requires. On 1 june 2016, the ministry of corporate affairs mca notified the following. Chapter xix revival and rehabilitation of sick companies. List of sections of companies act 20 that has been notified by the ministry of corporate affairs w. This is a ready reckoner for the information of stakeholders. It is nothing but a settlement for the offence committed by any company or.
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