Tag Archives: Ministry of corporate affairs

CONVERSION OF PUBLIC COMPANY INTO PRIVATE COMPANY


Law stated in this post is as on 20th December 2018.

With effect from 18th December 2018, conversion of a public company into a private company requires approval from the Central Government. Earlier such conversion requires approval from the National Company Law Tribunal. This change was made by the Company Amendment (Ordinance) 2018 with effect from 2nd November 2018 and the Companies (Incorporation) 4th Amendment Rules, 2018 with effect from 18th December 2018.

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Shifting Registered Office to another state


On 27th July 2017, Ministry of Corporate Affairs published a notification in Official Gazette of India amending the rules relating to shifting of registered office of a company from jurisdiction of its present registrar of companies to another registrar of companies. The Companies (Incorporation) Second Amendment Rules, 2017 came into effect from date of publication. In this post, we will discuss shifting of registered office of a company to another state of union territory.

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Shifting Registered Office to different Jurisdiction in same state


On 27th July 2017, Ministry of Corporate Affairs published a notification in Official Gazette of India amending the rules relating to shifting of registered office of a company from jurisdiction of its present registrar of companies to another registrar of companies. The Companies (Incorporation) Second Amendment Rules, 2017 came into effect from date of publication. In present post, we will discuss first aspect of such shifting of registered office – shifting within a state but from one registrar of companies to another registrar of companies.

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Appeal or Application for Restoration of Names of Company


The National Company Law Tribunal (Amendment) Rules, 2017 notified on 6th July 2017 which came into force in same date inserted Rule 87A the National Company Law Tribunal Rules, 2016. In this post, we will discuss newly inserted rules with brief background.

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Out of Sahara Blues


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.

 

Ease to surrender DIN


Now, Ministry of Corporate Affairs introduced relatively easy and online e – form for surrendering director identification.

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Minister Arjun Ram Meghwal


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.