Is there any possibility of restoring the Companies Act, 1956? This question must be running in the minds of many entrepreneurs and professionals. There is so much of ambiguity in the framing of the draconian 2013 Act, that one feels the 2013 Act deserves a mercy killing and it will be good to replace it with the friendly 1956 Act. If that is not possible, there is an immediate need for a re-birth of 2013 Act, the regulator can bring in an all-new revised Companies Act after rectifying the errors, which is the practice with any failed product.
No one seems to take any steps to make a representation to the Government to protect the interest of SME’s and small companies in the country, most seem to be busy marketing new age slogans of the Prime minister. There seems to be no ease of doing business in the country and it seems logical that before the business is awarded a mercy killing; why not kill Companies Act, 2013.
On June 5, 2015 the government has come out with a few notifications that is a breather to Companies Act. These notifications have ensured that the Companies Act is here to stay and there is no need for a mercy killing. There is some relief for private companies with provisions like exemption of section 101 to 107 & 109, not filing MGT 14 for 117(3)(g), section 160 for deposit of Rs. 1 lakh, Section 180 and providing more clarity to section 196(4) & (5).
This notification is only the beginning as there is much more to be done to restore the past glory of Companies Act 1956 and provide comfort to do business in India. In fact, with so many clarification, rules, notification, amendments, why do we need Companies Act 2013, we may as well do a mercy killing of the 2013 Act and restore Companies Act 1956.
The regulators seem to have bungled up and committed a blunder by bringing in this new Companies Act 2013, in fact going by the number of changes to the new Act, the regulators could have retained the time tested Companies Act 1956 and issued all theses clarification, rules, notification, amendments and given the OLD Act a fresh look. But it seems it is a little too late to wish for a restoration of the 1956 Act, and at this stage we cannot afford a mercy killing of the 2013 Act.
Instead of MERCY KILLING of Companies Act 2013 an AMNESTY Scheme seems to be the need of the hour, for the acts of omission & commission that entrepreneurs and professionals may have committed while discharging their functions in the last 15 months mostly out of ignorance of this law that was never understood by anybody including the regulator.
Tags Corporate Law