The law stated in this post is valid from 19th February 2019. The earlier post on the subject here was valid from 1st April 2014 till 18th February 2019.
Section 454 of the Companies Act 2013 discussed earlier here, deal with the adjudication of penalties. This Section is supplemented by the Companies (adjudication of Penalties) Rules 2014. This Section was amended by the Companies (Amendment) Ordinance, 2018 and Its retained as amended by first and Second Company amendment Ordinances of the year 2019. Accordingly, the Companies (adjudication of Penalties) Amendment Rules 2019 substituted Rule 3 of the Companies (adjudication of Penalties) Rules 2014. In this post, we will discuss these amended provisions.
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 corporates. Moreover, soon after this ordinance government issued a consultation paper for further urgent reforms.
Readers may read this post as a law applicable with effect from 2nd November 2018 till passing law by the Parliament. In this post we will discuss minor changes related to relaxing burden of special courts.
One might say the Companies Act, 2013 is more about dealing with corporate fraud than regulating companies. Section 447 is most talk about provision of this Act and many sections refer to this section directly.
Posted in Chapter XXIX - CA2013, Companies Act 2013
Tagged Adjudicating Officer, Companies Act 2013, Companies Bill 2012, CorpGov, CorpLaw, Corporate Governance, Corporate Law, fine, Fraud, imprisonment, India, Legal Reforms, Ministry of corporate affairs, penalty, Reforms, Regional Director