Effective Provisions of the Companies Amendment Act, 2017


With three Notifications S.O. 351(E) dated 23rd January 2018, S.O. 630(E) dated 9th February 2018 and S.O. 1833(E) dated 7th May 2018 most provisions of the Companies (Amendment) Act, 2017 (1 of 2018) come into force. Here is a bird’s eye view.

Notification S.O. 1833(E) dated 7th May 2018

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S. No. Section of the Companies (Amendment) Act, 2017 Section of Companies Act, 2013 Name of Section of Companies Act, 2013 Major Amendment 
1 Clause (i) and clause (xiii) of section 2 Clause (6) and (87) of Section 2 Definition of Associate and Subsidiary Amendment in definitions
2 Section 8 Section 26 Matters to be stated in prospectus Powers to SEBI
3 Section 13 Section 54 Issue of sweat equity shares One year waiting period for new company – deleted
4 Sections 18 Section 77 Duty to register charges, etc Exemption to Certain Charges
5 Sections 19 Section 78 Application for registration of charge More clarity on period of 30 days; Results in additional fee on per day basis;
6 Clauses (i) and (ii) of section 21 Subsection (6) and (7) of Section 89 Declaration in respect of beneficial interest in any share More clarity on period of 30 days; Results in additional fee on per day basis;
7 Clauses (iii) and (iv) of section 23 Subsection (4) and (5) of Section 92 Annual Return More adherence on period of 60 days;
Results in additional fee on per day basis;
8 Section 30 Section 117 Resolutions and agreements to be filed More clarity on period, reduction of amount of fine; Results in additional fee on per day basis
9 Section 31 Section 121 Report on annual General meeting More clarity on period of 30 days; Results in additional fee on per day basis;
10 Section 33 Section 129 Financial Statement Clarity on Accounting Standards in Consolidation of Accounts
11 Section 39 Section 137 Copy of financial statement to be filed with Registrar More clarity on period of 30 days ; Results in additional fee on per day basis
12 Section 40 Section 139 Appointment of auditors Annual Ratification of Auditor not required;
13 Section 46 Section 149 Company to have Board of Directors Logical requirement of stay of Director in India;
Clarity on pecuniary relationship of independent director; Strict provision for relatives of independent director
14 Section 49 Section 157 Company to inform Director Identification Number to Registrar More clarity on period of 30 days; Results in additional fee on per day basis;
15 Section 52 Section 164 Disqualifications for appointment of director Logical but small relief to newly appointed directors in defaulting companies
16 Section 54 Section 167 Vacation of office of director Clarity for defaulting companies; vacation in others
17 Section 55 Section 168 Resignation of director Forwarding of resignation of director optional
18 Section 56 Section 173 Meetings of Board Relax electronic presence where physical quorum present
19 Section 57 Section 177 Meetings of Board Relax for listed private companies;

Voidable Related Party Transaction;

20 Section 58 Section 178 Nomination and Remuneration Committee and Stakeholders Relationship Committee Relax for listed private companies;

 

21 Sections 61 Section 185 Loan to Directors Ease for  Loan to directors
22 Section 62 Section 186 Loan and investment by company Ease for a loan to employees, Wholly owned subsidiaries, etc.
23 First Proviso to clause (i) of section 80 and clause (ii) of section 80 Section 403 Fee for filing, Etc Daily fee after the period prescribed in Section 92 and 137;
Strict provision for filing;
Results in additional fee on per day basis
24 Section 83 Section 410 Constitution of Appellate Tribunal Appeal from National Financial Reporting Authority
25 Section 86 Section 435 Establishment of Special Courts Ease of establishment (designation of Court, not a new court)
26 Section 87 Section 438 Application of Code to proceedings before Special Court Status of Special Court for Code fo Criminal Procedure, 1973
27 Section 88 Section 439 Offences to be non-cognizable Member permitted (earlier only shareholder) as a complainant
28 Section 89 Section 440 Transitional Provisions Status of Special Court for Code fo Criminal Procedure, 1973

 

Notification S.O. 630(E) dated 9th February 2018

The table contains of details of provisions notified on 9th February 2018 was posted earlier here.

Notification S.O. 351(E) dated 23rd January 2018

Section 1 and 4 of the Companies (Amendment) Act, 2017 came into force on 26th January 2018 and discussed earlier here.

Provisions not yet notified

Section 3, 5, 6, 10, 15, 16, 20, 21 (part), 23 (part), 24, 25, 26, 36, 37, 67, 68, 69, 70, 71, 75, 76, 80 (part), and 81 of the Companies (Amendment) Act, 2017 are not notified, yet.

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One response to “Effective Provisions of the Companies Amendment Act, 2017

  1. Pingback: Effective Provisions of the Companies Amendment Act 2017 w.e.f. 13 June 2018 | AishMGhrana

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