Section 23 & 45 of Companies (Amendment) Act, 2020 came into force on 24th March 2021



Quick Summary
The Central Government has officially brought Sections 23 and 45 of the Companies (Amendment) Act, 2020, into force from 24th March 2021. These sections relate to the Unpaid Dividend Account and Valuation by Registered Valuers, respectively. As a result, penalties for non-compliance with Section 124 (Unpaid Dividend Account) and Section 247 (Valuation by Registered Valuers) have been reduced.

Central Government appoints the 24th March 2021 as the date on which the provisions of section 23 and section 45 of the said Act came into force. Read the official notification below:

MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 24th March, 2021

Companies Act 2020 Sections 23 and 45 Now In Force

S.O. 1303(E).—In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2020 (29 of 2020), the Central Government hereby appoints the 24th March, 2021 as the date on which the provisions of section 23 and section 45 of the said Act shall come into force.

S No.

Section of the Companies (Amendment) Act, 2020

Section of the Companies Act, 2013

Particulars

1

Section 23

Section 124(7)

Unpaid Dividend Account

2

Section 45

Section 247(3)

Valuation by Registered Valuers

Accordingly, w.e.f. 24.03.2021, penalty has been reduced under section 124(7) and 247(3) for failure in complying with the provisions under section 124 and contravention of the provisions of section 247 or the rules made thereunder respectively.

F. No. 1 /3 /2020-CL.I]
K. V. R. MURTY, Jt. Secy.

FAQ :

Sections 23 and 45 of the Companies (Amendment) Act, 2020, came into force on 24th March 2021.

Section 23 of the Companies (Amendment) Act, 2020, relates to the Unpaid Dividend Account, specifically referencing Section 124(7) of the Companies Act, 2013.

Section 45 of the Companies (Amendment) Act, 2020, relates to Valuation by Registered Valuers, referencing Section 247(3) of the Companies Act, 2013.

Penalties have been reduced for failure to comply with the provisions under Section 124 (Unpaid Dividend Account) and for contravention of Section 247 (Valuation by Registered Valuers) or its rules.

The Central Government appointed the date for these sections to come into force.




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