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The Companies Act, 2013 ('the Act') is a landmark legislation with far-reaching consequences on all companies incorporated in India. The Ministry of Corporate Affairs (MCA) had already made 98......
The Companies Act, 2013 ('the Act') is a landmark legislation with far-reaching consequences on all companies incorporated in India. The Ministry of Corporate Affairs (MCA) had already made 98 sections effective in September 2013. Further on 26 March 2014, the MCA has notified most of the remaining sections. These sections have been notified to come into effect from 1 April 2014.
With the notification of aforesaid sections, it can be assumed that relevant rules will also be notified shortly as most of them are dependent on rules.
Pending the formation of the National Company Law Tribunal (NCLT) the National Financial Reporting Authority (NFRA), and the framework for registration of valuers, those provisions that require these institutions have not yet been notified. The requirement to approach the NCLT intermingles with several sections of the Companies Act, notably the sections relating to mergers and restructuring and winding up of companies. It seems that until the NCLT and NFRA are formed the regulatory framework under the Companies Act 1956 would continue to apply. The provision relating to dissolution of the Company Law Board has not been notified.
Another point to note is that the sections relating to transfer of unclaimed dividend and corresponding shares to the Investor and Education Fund have also not yet been notified.
The new Companies Act provided an enabling framework to set up special courts. The provisions relating to these special courts have also not been notified.
Further, the new Companies Act requires, in several cases, valuation to be done by registered valuers. The provision relating to registered valuers has not been notified however, the individual sections that carry the requirement for valuation to be carried out by a registered valuer have been notified.