With Four Notifications; S.O. 351(E) dated 23rd January 2018, S.O. 630(E) dated 9th February 2018, S.O. 1833(E) dated 7th May 2018 and S.O. 2422(E) dated 13th June 2018 most provisions of the Companies (Amendment) Act, 2017 (1 of 2018) come into force. Here is a bird’s eye view.
Category Archives: Governance and Responsibility
After numerous many leakages of sensitive information on faulty governance and unearthing of scam, Government is facing firework from ruling party and its parent organisations. The friendly government of corporate houses with allegedly better relationship with corny – capitalists business organisations, once again looking towards corporate jungle for next round of its killing hunt. As per primary level media reports, Ministry of Corporate Affairs preparing for additional information from directors to nab them at first sounding of the alarm bell. This is in public domain now; government is going to ask passport information of directors who are a citizen of India. This news is bigger than it appears in earlier newspaper reports.
We are extremely proud to announce to our readers that this Blog – AishMGhrana Law Governance Responsibility – has been ranked as one of the Top 40 Indian Law Blogs, published by Feedspot. This list is based on, among others, the quality and consistency of posts, social media presence. The entire list can be accessed here.
This blog already among Top Hundred Law blogs globally.
We are extremely grateful to our readers for their encouragement and support, without which we couldn’t have reached here. We hope to perform even better this year and achieve many more milestones.
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Like Olympics, world cups and leap year, another thing sure to happen is some party talk around rechristening the ICSI. Usually, this informally happens just before leap year for a single reason already in public. This event occasionally gets formal. There are similar reasons used every time for acceptance and refusal of the exercise. Most company secretaries with humble backgrounds have an issue with term “secretary” and other with restrictive term “company”.
In post “Technical Fault in issuance of Secretarial Standards” posted long ago, I humbly made certain observations on notifications of two Secretarial Standards which was approved by Central Government and specified by the Institute of Company Secretaries of India (ICSI). A surprise notification of withdrawal published on 17th august 2017 come in support of my prima facie views. This withdrawal is effective with effect from 30th September 2017. Here, a discussion.
Finally government tries to come out of Sahara Blues. Government earlier was in pressure to put corporate governance in place among private companies and tried well. Thereafter, industry lobby (read as vested interests among “promoters” and “professionals”) started pleaded mercy for all “otherwise honest players”.
Government initiated it journey with exemption notifications and now bring this amendment rules.
The Companies (Audit and Auditors) Second Amendment Rules, 2017 is interesting in more than one way. Statistically, this exemption will benefit only selected big players among private companies in India and their auditors.
Section 139(2) of the Companies Act, 2013 reads, “No listed company or a company belonging to such class or classes of companies as may be prescribed, shall appoint or re-appoint—
(a) an individual as auditor for more than one term of five consecutive years; and
(b) an audit firm as auditor for more than two terms of five consecutive years.”
Rule 5 of the Companies (Audit and Auditors) Rules 2014 before present amendments reads, “for the purposes of sub-section (2) of section 139, the class of companies shall mean the following classes of companies excluding one person companies and small companies:-
(a) all unlisted public companies having paid up share capital of rupees ten crore or more;
(b) all private limited companies having paid up share capital of rupees twenty crore or more;
(c) all companies having paid up share capital of below threshold limit mentioned in (a) and (b) above, but having public borrowings from financial institutions, banks or public deposits of rupees fifty crores or more.”
Now, the Companies (Audit and Auditors) Second Amendment Rules, 2017, amend clause (b) of rule 5. The amendment rules reads, “in the Companies (Audit and Auditors) Rules, 2014, in rule 5, in clause (b), for the word “twenty”, the word “fifty” shall be substituted.
This amendment rules increase threshold limit for rotation of auditors for private companies by a good 150%.
As number of companies and auditors is not much, it may not affect stakeholders significantly but our commitment towards corporate governance.
This business is politics. Kevin Spacey and Robin Wright have proven it yet again in the magical political drama. The Underwoods keep you spellbound with the ultimate passion of power. The gait, the style, the fashionable couple have very well-kept the audience captured in the past and so surely this time also. Chessboard of intense playful politics once again is inside our home on our screens. The successful four seasons of the House of Cards is a testimony of how politics remain a part of our living room. With season five on run the series have maintained the political strategies as core designs of the drama.
With the recent real – life political screenplay rewritten in United States, it gets quite interesting to watch dramatic president Frank Underwood. You try to relate things happening and actions of current President, which may or may not relate. Terror is new nucleus of politics everywhere in the world and now it is homecoming of terror.
‘You’ve nothing to be afraid off’. The season 5 episode 1 begins with the strategic handling of the corruption accusations published in Washington Herald against the President. This is a valuable past to defend, the deeds he did earlier as the Vice President. Frank Underwood steals the show when he uses his power play and emphatically manipulates the debate to lead towards terrorism. He demands declaration of war against ICO and seeks support from house of congress. You cannot afford to miss, his spouts, “I will not yield”.
Frank Underwood has come to India, tune into the House Of Cards Season 5 Marathon (episodes 6 – 10) on Saturday, 10th June, 5 PM onwards, only on Zee Café!
This episode carries its main substance from the last episode of season 4, wherein Jim Miller was beheaded by ICO. The contentious whisper of Miller’s daughter, in Frank’s ears, at the funeral of her father, leaves the audience with a curious drama. Something may happen soon, it may be in next few episodes. You get little hints with a curiosity of how.
First episode successfully annex you to your television sets. The episode builds on; the Underwood couple tastes public resentment. It does not last long with their moves to gain the public confidence towards the closure of an hour long episode. The first episodes itself makes a mood for not “Homecoming of Terror” but “politics of terror”. The audience becomes an addict of power play, it has.
Claire Underwood’s public service announcement on a television filming is a deliberate move towards upcoming elections, which we may witness in future episodes. The hysterical wish of Miller’s daughter puts Claire, the first lady, in a position where the audience assumes far-reaching admiration for Claire. I keep my figure crossed. #HOConZCafe ignites social media.