Amendment in Companies
Act likely in 3 phases: Sources Since the notification of Companies Act on
April 1, 2014, there have been demands by corporates and company law experts to
amend it.
since the notification
of Companies Act on April 1, 2014, there have been
demands by corporates and
company law experts to amend it.
.
The Ministry of Corporate Affairs (MCA) is likely to amend or
clarify the Companies Act 2013 in three phases, said sources. CNBC-TV18 learns
that the ministry is likely to invoke Section 470 to expedite the
implementation of the Act, reports Malvika Jain. Since the notification of this
Act April 1, 2014, there have been demands by corporates and company law
experts to amend it . There are several provisions within the Act which also
need clarification and now after the meeting, which took place between
representatives of the companies and company law experts and MCA officials, the
ministry has decided to identify the priority area, which needs to be addressed
immediately. The rest will be divided into critical and general areas and then
eventually the ministry will invoke Section 470, which exists in the Act itself
to remove difficulties in its implementation. MCA is also likely to invoke
Section 462 to exempt certain classes of companies from various provisions of
the Companies Act. Presently, there are various provisions that the ministry is
looking into this includes appointment of women directors, role of directors
and the manner in which overall formation of companies take place.
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