Government of India has removed a dozen difficulties from the Companies Act, 2013. Yes, the Companies (Removal of Difficulties) Third Order, 2016 is twelfth order in Removal of difficulties series of Orders in these three years.
In this post we will discuss this Removal of Difficulties Order.
Posted in Chapter I - CA2013, Chapter X - CA2013, Companies Act 2013, CorpGov, Governance and Responsibility
Tagged Auditor, Removal of Difficulties, Rotation of Auditor, Section 139 of Companies Act 2013, The Companies (Audit and Auditors) Rules 2014, the Companies (Romoval of Difficulties) Third Order 2016
On 18th May 2016 Insurance Regulatory and Development Authority of India issued revised guidelines on corporate governance for insurance companies. In earlier post we discussed these guidelines in brief. In this post, we will briefly discuss, Key Management Persons for insurance companies as mentioned in these guidelines.
Despite my long standing habit of seeing governments and political leaders, irrespective of party they belong, critically; one political leader, I appreciate is Arjun Ram Meghwal. I know much less about the person, but the information in popular public domain is impressive.
He is a person, who use his cycle (push – bike) to his place of work, Parliament of India at his age of 61. Recently, we husband – wife took inspirations from him to use cycle to place of work though we may not agree with many of his political thoughts.
He belongs to traditional Weaver family (a depressed caste and class in India) of Kismidesar village in Bikaner. He is a “victim” of traditional child marriage system, married at age of 13. He was born on 7th December 1954.
After marriage, he did graduation in Arts, Law and masters thereafter. After marriage, study is quite a hardship for all women or men alike.
He started career as telephone operator, considered as low profile career option and front line of corruption for years till opening of sector for marker competition. He won the elections for the post of general secretary of Telephone Traffic Association.
Thereafter, he passed the examination for Rajasthan State Administrative Service in his second attempt. This is again a good achievement for a child married dalit telephone operator.
But, story not end here, he got promoted (awarded) Indian Administrative Service (IAS). Promotion to PCS (State Administrative Services) to IAS, need hard work, experience, public respect and sometime political connections.
He won the election for Lok Sabha (lower house of Indian Parliament) in 2009 and 2014.
Now, he is Minister of State for Ministry of Finance and Ministry of Corporate Affairs and will report to his senior in these ministries Sh. Arun Jaitly.
Posted in Governance and Responsibility, Truth of Our Time
On 18th May 2016 Insurance Regulatory and Development Authority of India issued revised guidelines on corporate governance for insurance companies. In last post we discussed these guidelines in brief. In this post, we will briefly discuss, Board Committees for insurance companies as mentioned in these guidelines.
Posted in CorpGov, Governance and Responsibility
Tagged Audit Committee, Board Committee, Corporate Social Responsibility Committee, Insurance Company, Insurance Regulatory and Development Authority, Investment Committee, Nomination and Remuneration Committee, Policyholder Protection Committee, Risk Management Committee, With Profit Committee
On 18th May 2016 Insurance Regulatory and Development Authority of India issued revised guidelines on corporate governance for insurance companies. These Guidelines are applicable from finance year 2016 – 17 except a relief later on granted in respect of auditor. In this post, we will briefly discuss these revised guidelines.
Yesterday late evening, I posted here about press release issued by Ministry of Corporate Affairs. Soon thereafter, two files uploaded on Official Gazette website with two notifications in each. In earlier post here today, we discussed establishment and jurisdiction of various NCLT benches.
In this post, we will have a bird’s eye view on Sections notified on 1st June 2016 related to NCLT.
Posted in Chapter I - CA2013, Chapter II - CA2013, Chapter IX - CA2013, Chapter VI - CA2013, Chapter VII – CA2013, Chapter XI - CA2013, Chapter XIV - CA2013, Chapter XV - CA2013, Chapter XXVII - CA2013, Companies Act 2013, CorpGov, Governance and Responsibility
Tagged Accounts, Annual General Meeting, Annual Return, Articles, Auditor, Board of Directors, Boards’ Report, class-action suits, Debentures, deposits, Deposits Creditors and Charges, General Meeting, Incorporation, Incorporation & Registration, Inquiry, INQUIRY AND INVESTIGATION, Inspection, Investigation, Members and Shareholders, Memorandum, National Company Law Appellate Tribunal, National Company Law Tribunal, NCLAT, NCLT, Oppression and Mismanagement, Shares and Securities, Statutory Audit
In a post earlier here, we discussed provisions of Section 135 read with rule 4 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 regarding Administration of Corporate Social Responsibility Policy. Sub – rule (2) of rule 4 allow board of directors of a company to choose among various options, a better option to administer the CSR Policy. This rule 4(2) was slightly amended by the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2015. We discussed those amendment rules earlier here.
Now, a gazetted notification published on 23rd May 2016 in Official Gazette of India, which came into force from same date; amend sub – rule (2) of rule 4.
“We will end the Inspector – Raj”
This is most promising promise by Indian politicians since last 25 years or more. But Inspectors are essential part of our law enforcement system. All prominent laws have provision of inspectors including the Companies Act, 2013. Recently, Ministry of Corporate Affairs circulated a draft of a notification pending publication in Official Gazette. We will discuss this notification and law behind this notification.
What is MCA21 (or MCA@! as some company secretaries writing it in private chat)? Today, one article published in a newspaper link here, tried to explain this most trusted mission mode project by Government of India which became most taunted Mast Mood Project by Corporate of India.
The Story starts unfolding when one corporate contractor took over from another. In a public event, an officer of a company claimed to took over the bullock cart.
Posted in Governance and Responsibility, Truth of Our Time
Tagged Company Secretaries, Infosys, MCA, MCA21, Start up India, TCS
Ministry of Corporate Affairs issued an advertisement (a Public Notice) in newspapers asking all directors to bring down number of their directorship to the permissible limit as prescribed under Section 165 of the Companies Act, 2013.
“All such individual who are holding directorship in more than, the limit of number of companies prescribed per the aforesaid mentioned provisions of the Act, are hereby notified to bring down the number of their directorship to / below the permissible limits as also prefer compounding application before the competent authority in terms of Section 621A of the Companies Act, 1956 within 30 days hereof and get the offence compounded. In case of non – compliance with the above directions, the jurisdictional ROC will initiate prosecution without further individual notices to them.”
In this blog post, we will discuss this Public Notice and applicable provisions.
Compliance of Indian corporate law is a big issue for its stakeholders. Successive government here talk about ease of doing business and do mammoth task to achieve it with confusion related to directions.
The Companies Act, 2013 followed by end numbers of Companies Rules and their amendment rules was not enough; Ministry of Corporate Affairs launched V2R2 through its high profile contractor Infosys. Now, we have another circular to get some “ease of doing relaxation”. We will discuss short term circular here.
General Circular 03/2016 dated 12th April 2016 aims to Relaxation of additional fees and extension of last date of filing of various e-Forms under the Companies Act, 2013. The circular read as under:
“This ministry has launched V2R2 on 28th March, 2016, downtime was given to Infosys from 25th March 2016 to 27th March, 2016, since the launch of the system, a number of stakeholders have faced issues and representations have been received from stakeholders to resolve the issue including, for allowing waiver of additional till the new system stabilizes.
In view of the above, it has been decided to relax the additional fee payable on e- forms which are due for filing by companies between 25th March 2016 to 30th April 2016 as one time waiver of additional fee and it is also clarified to stakeholders if such due e – forms are filed after 10.05.2016, no such relaxation shall be allowed.
This issues with the approval of the competent authority.”
This circular has many communications to its stakeholders. Most read is, “Forms due for filing during period between 25th March, 2016 to 30th April, 2016 may be filed without additional fee till 10th May 2016”.
The circular contain other interpretation and information:
It is advisable, not to file any document related to companies without assuming own risk.
This circular does not talk about Limited Liability Companies, to keep trying and assume own risk.
I have just a request with government (please read bureaucracy, Not PM Modi), please understand compliance calendar of stakeholders. December to February may be best time to experiment.
Please note: This blog invite readers to share their comments, suggestions, hardship, queries and everything in comment section. This blog post is not a professional advice but just a knowledge sharing initiative for mutual discussion.
Government recently introduced the Companies (Amendment) Bill, 2016 to the Companies Act, 2013 proposes thirteen amendments in Section 2 related to definitions. Definition clauses always need contextual reading. Now, we will discuss these amendments in definitions.
The Companies (Auditor’s Report) Order, 2016 is notified on 29th March 2016 in supersession of the Companies (Auditor’s Report) Order, 2015 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number S.O. 990 (E), dated the 10th April, 2015, except as respects things done or omitted to be done before such supersession.
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A policy document, copy of which is available, say that Ministry of Corporate Affairs is planning to reorganise role of three corporate bodies namely; Institute of Chartered Accountants of India (ICSI), Institute of Company Secretaries of India (ICSI) and Institute of Cost Accountants of India (ICAI). After introduction of National Financial Regulatory Authority (NFRA) under the Companies Act, 2013, there was long-standing speculation about the role of these three professional bodies. This policy document, which is in nascent stage, say all policies and standard making powers shall vast in either in the National Financial Regulatory Authority (NFRA) or some other body with broader mandate. Regulatory role of these three bodies is also under public discussion after concerns raised by parliamentarians and top foreign investors.
When followers of two major Indian Political parties are using abusive language for mothers and others of opponent, their “leaders united” is working for their brotherhood causes silently, continuously and legally. One of the most popular narrative from both political side on social media claims, media do not show “their” truth. Here, we will discuss one aspect of this year’s budget unreported in conventional media.
We have discussed two year earlier here on 31st March 2014 Foreign Donation to political parties.
Dear Finance Minister,
Regarding – Presumptive Income Scheme – Income from Profession
In present Budget 2016 – 17, you rightly made a proposal for a presumptive Income Scheme by introduction of Section 44ADA in the Income Tax Act, 1962. This proposal is based on recommendations of “Income Tax Simplification Committee” constituted by Central Government under the chairmanship of Justice R. V. Easwar, Former Judge of the Delhi High Court and Former President of the Income Tax Appellate Tribunal.
The simplified presumptive taxation scheme is extended to persons earning professional income. According to government, this scheme will help to rationalize the presumptive taxation scheme and to reduce the compliance burden of the small tax payers having income from profession and to facilitate the ease of doing business.
Posted in Company Secretary, Truth of Our Time
Tagged Budget 2016, Income from Profession, Income tax, India, Profession
Recently, this blog received request form small promoters and investors asking information to receive information about company. Individual investors express fear about own investment in own companies.
Though, I suggest them to get professional help from local company secretary or chartered accountant, if company secretary is not available in their locality. But a simple, Do It Yourself (DIY) may help them.
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In an order dated 17th February 2016 Whole Time Member of Securities and Exchange Board of India, debars an auditor (Chartered Accountant is this case) from issuing any certificate. SEBI held that the Auditors had aided and abetted the Company in committing the alleged fraud.
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AishMGhrana 