Correction required under new companies act, 2013

MCA 1507 views 13 replies

Ajay Mishra

Company Secretary

74342 Points Joined March 2009

Dear All

As per Section 2(47) of the new Companies Act, 2013 as notified on 30.08.2013 says that “independent director” means an independent director referred to in sub-section (5) of section 149”.

Whereas when we read sub section (5) of section 149, it says Every company existing on or before the date of commencement of this Act shall, within one year from such commencement or from the date of notification of the rules in this regard as may be applicable, comply with the requirements of the provisions of sub-section (3).

Such sub section (5) is not talking about Independent Director. However sub section (6) of section 149 deal with the provision of Independent Director.

So as per my view there is misrepresentation of sub section in sub section 2(47) of the Companies Act, 2013 which defined Independent Director.

Please share your views thereon.

Replies (13)

Sneha

Company Secretary

1594 Points Joined December 2010

Great observation sirjee.. :)

Yea, It needs to be amended..

Guest

Whether they are going to keep the option for suggesstions??

Sneha

Company Secretary

1594 Points Joined December 2010

Yes Priyankaji.. It will be open for 60 days for suggestions and comments..

Guest

In the words of Economics times

NEW DELHI: The landmark Companies Bill has been enacted, replacing the nearly six-decade old regulations that governed corporates in the country.

After being approved by Parliament last month and receiving assent from President Pranab Mukherjee, the new laws have been now Gazetted.

"The historic new Company Law in the country has been enacted with the President of India giving his assent to the Companies Bill, 2013.

"It has now been published in the Gazette of India, Extraordinary, Part-II, Section-1, dated the 30th August 2013 as Act No. 18 of 2013," the Corporate Affairs Ministry said in a release today.

The new laws bring in substantial changes in regulations that govern companies registered in the country.

The legislation, which had to wait for the Rajya Sabha nod for about eight months after getting passed by Lok Sabha in December last year, would replace the Companies Act 1956.

The ministry is in the process of finalising rules for the implementation of the new legislation. Once the draft norms are ready, they would be put on the ministry's website for up to 60 days for comments from various stakeholders.

Among new aspects, the new legislation requires certain class of companies to shell out at least two per cent of their three-year average annual profit towards social welfare activities.

Besides, various new clauses have been introduced to empower as well as protect investors and bring in more transparency in corporate governance.