This was a long-standing demand to have less compliance for one person and small companies. Rule 8A introduced with effect from 31st July 2018 by the Companies (Accounts) Amendment Rules 2018. Let us discuss.
Category Archives: Chapter IX – CA2013
The Companies Amendment Act, 2017 read with notification dated 9th February 2018 amended law related to the rights of a member to copies of audited financial statements under Section 136 of the Companies Act, 2013. Section 136, in its original form, as applicable from 1st April 2014 until 8th February 2018. We shall discuss amended section 136 here.
The Companies Amendment Act, 2017 read with notification dated 9th February 2018 amended law related to re-opening of books of accounts under the Companies Act, 2013. Re-opening of accounts is one special feature under the Act. Section 130 deals with the law relating to re-opening of books of account. Section 130, in its original form, as applicable from 1st June 2016 till 8th February 2018. We shall discuss amended section 130 here.
Every Indian wants action against others who are not in compliance with law and disregard law of land. Same time, Ministry of Corporate Affairs was forced to introduce the condonation of Delay Scheme, 2018 within 1140 days (roughly 3 years) from the conclusion of earlier such scheme. Between these two schemes, the name of lakhs of companies was removed from Registry and list of Directors 3,09,614 disqualified directors released to the public domain because of such non – compliance. With fear of legal actions, corporate India and professional India welcome this scheme with critics. The strong analysis ahead.
Compliance way or Confine way! The Government made it clear. Directors who were on a long-term picnic after removal of names of their “shell companies” are now offered sleepless nights. I appreciate.
Ministry of Corporate Affairs issued two important lists in this regard –
- List Of Directors Associated With Struck Off Companies U/S 248
- List Of Disqualified Directors U/S 164 (2)(A)
Ministry of corporate came out with minor but significant decision in the Companies (Registration Offices and Fees) Rules, 2014 by way of the Companies (Registration Offices and Fees) 2nd Amendment Rules, 2016.
According to Section 148 (3) of CA 2013 and Cost audit Rules 2014, cost auditor shall be appointed by the Board.
According to Section 148(3) of CA2013 and Audit and Auditor Rules, 2014 Remuneration shall be determined by the Members (in general meeting).
Now, according to Contract Act, 1872 (or in common law) this contract of appointment of cost auditor completes at General Meeting only that too on passing on resolution.
Query 1 – should we call it as “approval/ratification of remuneration or cost auditor” or “appointment of cost auditor” in general meeting? Unlikely but interesting situation will be where in members in general meeting does not ratify remuneration or modify the remuneration.
First case, no contract and second case counter offer. Further interesting, shall cost auditor bound to accept modified remuneration or not?