Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

INCORPORATION OF COMPANIES - Proposed Amendments in the Companies Act 2013

News and Press Release - Dated:- 2-2-2016 - Memorandum 2.1 Section 4 of the Act requires a company to have a Memorandum of Association (MOA), which has to be subscribed to by the persons incorporating a company. The Companies Act, 2013 has done away with the bifurcation of objects into main and other objects. Instead, Section 4(1)(c) and Schedule I require the MOA of every company to state the objects for which the company is proposed to be incorporated and any matter considered necessary in fur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

adequate provisions for disclosures on the current objects of a company. Sectoral regulators can always prescribe restrictive criteria to suit their requirements. The Committee, therefore, recommended for a more liberal operational regime for companies. To provide for this, the Committee recommended that Section 4(1)(c) should be amended appropriately, to allow companies the additional option to have a generic object clause, i.e., to engage in any lawful act or activity or business as per the la .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ency in the system and reduce misuse by reducing the period of reservation to 20 days by amending Section 4(5)(i). The Committee, therefore, recommended that the period of name reservation should be reduced from 60 days to 20 days from the date of approval, and simultaneously, the fees for such reservation be reduced to Rupees Five Hundred. Incorporation of companies 2.3 Section 7 of the Act provides for requirements in relation to the incorporation of companies. Section 7(1)(c) requires affidav .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, and could, at times, lead to a delay in the incorporation of companies. It was also suggested that certification under Section 7(1)(b) could be either from directors/managers/secretaries or from professionals, and not from both. The Committee felt that the requirements with respect to affidavits under Section 7(1)(c) could be replaced with self-declarations, as a wrong declaration carries a stiff punishment under the Act. Regarding certification under Section 7(1)(b), the Committee felt that a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tered office immediately on incorporation, or earlier than the fifteenth day of its incorporation, whereas a company could have its office from the day of its incorporation. The Committee felt that this sub-section may be amended to provide for a company to have its registered office within thirty days of its incorporation. 2.5 Section 12(4) provides for the recording of the change of the registered office of a company by the Registrar, after being given notice of the same by the company within .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and contracts 2.6 Section 21 of the Act provides that a document requiring authentication by a company, or contracts made by, or on behalf of a company, may be signed by any key managerial personnel or an officer of the company duly authorized by the Board in this behalf. It was stated before the Committee that since the definition of officer under Section 2(59) included top level management persons in a company, it would be practically very difficult for only such top level persons to sign the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version