The Companies Amendment Ordinance 2019


The Government of India Promulgated the Companies (Amendment) Ordinance, 2019 on 12th January 2019 to give continuing effect to the Companies(Amendment ) Ordinance, 2018 and to amend the Companies Act, 2013. This is notable that the companies (Amendment) Ordinance, 2019 has a significant difference its precursor.

In my post earlier there, I noted:

The government of India promulgated a temporary law called the Companies (Amendment) ordinance 2018 on 2nd November 2018 to by parachute landing of few more reform measure. Constitution of India mandate that Government needs to get it approved by Parliament within 6 months. However, the companies (Amendment) Ordinance, 2018 has nothing which may require urgent attention unless government going to launch large-scale prosecutions against companies. Moreover, soon after this ordinance government issued a consultation paper for further urgent reforms.

The requirement

The Companies (Amendment) Ordinance 2018 was promulgated on 2nd November 2018. The winter session of the Parliament of India held from 11th December 2018. According to Article 123 of the Constitution of India, an ordinance shall cease to operate at the expiration of six weeks from the reassembly of Parliament, unless it is passed by the Parliament as law before that. The Companies Amendment Ordinance 2018 had its life only up to 21st January 2018. The Government promulgated the fresh Ordinance ten days before the expiry.

Major feature of the Ordinance, 2019

The Companies (Amendment) Ordinance 2019 has following salient features:

  1. It comes into force 2nd November 2018 to give a continuing effect of the provisions of the Companies Amendment Ordinance 2018;
  2. All reference to the Companies Amendment Ordinance 2018 and its commencement date are now made to refer the Companies Amendment Ordinance 2019 and its commencement date;
  3. It repeals the companies Amendment Ordinance 2018; and
  4. It has one more amendment than the companies Amendment Ordinance 2018. Its Section 31 is not the same as Section 31 of the earlier ordinance.

Section 31 – Amendment of Section 454

Section 31 of the Companies Amendment Ordinance 2019 amends Section 454 of the Companies Act, 2013. Section 454 deals with the Adjudication of Penalties.

Clause (ii) of Section 31 of the Ordinance amending Section 454(4) gives require adjudicating Authority to give a reasonable opportunity of being heard to such company, and the officer who is in default or any other person.

This is a significant amendment. The Adjudicating Officer now bound to give an opportunity to any other person in matters came before it from 2nd November 2018. This

We will discuss this provision in another post.

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One response to “The Companies Amendment Ordinance 2019

  1. Thirupal Gorige

    Very good observation.

    Liked by 1 person

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