The spate at which MCA has begun issuing clarifications, Lexspeak may as well be called ‘MCAspeak’ ! This issue is testimony to that. It reflects the poor drafting of the new company law currently giving sleepless nights to trade, industry, corporates and professionals alike who are dumbfounded with the contradictions, impracticality of certain provisions, excessive information to the
regulator in the name of transparency, restrictive procedures for raising further capital by companies with no public interest in them, last minute deadline extensions, frequent breakdown of the backend technology and several other issues.Result is that the new Government has decided to take a relook at the law based on the representations received. But what happens to businesses until then ? They are dynamic and require to be carried on seamlessly. Waiting for clarity in law can cost a lot. It may never happen. Not waiting can be even more onerous. It is sincerely hoped that a pragmatic approach is adopted by the new Government even while upholding the tenets of good corporate governance. Aristotle said “Well begun is half done”. Unfortunately it cannot be said of CA2013, which is being clarified and clarified and interpreted ever since it began !
As professionals we are not quitting. We will hang on there and keep voicing our concerns and views until they are heard and acted upon.
Should you wish to refer to any of our older issues, do visit our Resource Centre at sharadasc.com.Warm regards
A Company having paid-up capital of 5 crore rupees or more shall have Whole-time Company Secretary. In effect the requirement existing under the old Act continues.
Compliance with relevant provisions of e-voting relating to demand for poll / postal ballot etc., made mandatory from 01.01.2015. Several clarifications issued on e-voting.
Based on several representations, MCA has clarified that a liberal interpretation of activities recognized as CSR will be permitted. Accordingly a detailed Q&A kind of clarificatory table has been issued expanding the scope of CSR projects.
Company shall declare and make payment of dividend after making good the previous year losses and depreciation carried over and not provided in any previous year/s out of current year profit only.
Provisions of CA1956 prevail for issue of Equity shares with differential rights made under the said Act.
Independent Merchant Banker registered with SEBI and Independent practicing Chartered Accountant having at least 10 years of experience can act as Registered valuer.
Price of shares or other securities not to be less than price determined in valuation report.
Certain Companies may issue secured debentures for the period not exceeding 30 years.
Format of Annual Return of CA1956 prevails for FY 2013-14 and free of cost inspection of records by Companies permitted.
Incorporation status of subsidiaries of Foreign Companies remains unchanged.
Shares held by a company in another company in a ‘fiduciary capacity’ shall not be counted for the purpose of determining the relationship of ‘associate company’.
The format of Annual Return on Foreign Liabilities and Assets (FLA) reporting to be made by Indian Companies for FDI received or ODI made abroad to RBI by July 15th has been revised.
All residents and non-residents may bring inside / take outside India Government of India currency of Rs.25,000/-, subject to certain condition. Earlier the value was limited to Rs.10,000/- only.
SEBI has issued clarification on provisions relating to Base Issue size, Minimum Subscription, Retention of Over-Subscription Limit and further disclosure in the Prospectus for Public Issue of Debt securities, made effective on / after 16.07.2014
Note: The contents of this
Newsletter are only a summary and has not dealt with any issue in detail. Any action
taken or proposed to be taken must be in consultation with professionals and not
merely based on the articles / news updates. Lex Valorem disclaims all liability on action taken without professional advice.