AMENDMENTS TO VARIOUS RULES OF COMPANIES ACT, 2013
The
Central Government has notified amendment to various rules under Companies Act,
2013. The amendments are effective from May 07, 2018. The amended provisions
have been discussed as under:
1. Amendment relating to meeting of board and its
powers:
MCA
has amended the Companies (Meetings of the Board and its Powers) Rules,
2014. A new provision has
been inserted to Rule 4 of the said rules providing that any other
director may participate through video conferencing or other audio visual means
if there is quorum in a meeting through physical presence of directors.
2. No more ratification of appointment of Auditor in
AGM:
MCA has amended the Companies (Audit and Auditors) Rules,2014. Amendment has been made to rule 3 whereby proviso
to sub-rule 7 of Rule 3 and explanation thereunder have been omitted. Which
means that the requirement of ratification of appointment of Auditor in
every annual general meeting (AGM) till the conclusion of sixth AGM has been
removed. Further Rule 9 of the said rules has been omitted. Rule 10A and
Rule 14 have also been amended.
3. 15 days' time for re-submission in case of
reservation of name through RUN:
MCA
has amended the Companies (Registration Office and Fees) Rules, 2014. A new provision has been inserted under to
Rule 10(3) providing that - Registrar shall allow fifteen days' time for
re-submission in case of reservation of name through web service -RUN for
rectification of defects if any. Earlier re-submission was not allowed in case
of re-submission of application through RUN.
4. Additional fee payable on delayed annual
filing:
An
amendment has been made in Annexure I of the Companies (Registration Office and Fees) Rules, 2014 prescribing additional fee of Rs. 100 per
day effective from July 1, 2018 for delayed in filing of annual return and
financial statements. The additional fee shall also be applicable to revised
financial statement or board report as well as Secretarial audit report.
5. Norms for appointment of Independent
Directors:
MCA
has amended the Companies (Appointment and Qualification of Directors)
Rules, 2014 whereby
amendment has been made to Rule. The revised norm provides that in case of
appointment of Independent Director, none of the relatives of such
independent director should be indebted to the company, its holding subsidiary
or associate Company or their promoters, or directors; or has given a
guarantee or provided any security in connection with indebtness of any third
person to its holding, subsidiary or associate company or their promoter or
directors for an amount of Rs. 50 Lakhs at any time during the two immediately
preceding financial years or during current financial year.
6. Amendment relating to prospectus and allotment of
securities:
MCA
has amended the Companies (Prospectus and Allotment of Securities) Rules,
2014. The amendment
prescribes omission of rule 4 - Reports to be set out in the Prospectus, rule
5- Other matters and reports to be stated in the prospectus and rule 6- Period
for which information to be provided in certain cases.
DISCLAIMER: The information given in this document has been made on the basis of the provisions stated in the Companies (Amendment) Bill, 2017 and Companies Act, 2013. It is based on the analysis and interpretation of applicable laws as on date. Under no circumstances whatsoever, the blogger shall be responsible for any loss, claim, liability, damage(s) resulting from the use, omission or inability to use the information provided in the document.
CS Diwakar Agrawal
PH: +91-9911746549
