Draft rules under Companies Act seek details of Board directors

Firms will have to disclose details of directors' appointments, remuneration, their interests, among other things

Companies will have to disclose details of directors on their boards including their appointments, remuneration, their interests etc, prescribed a second tranche of draft rules under the newly-enacted Companies Act.

According to the rules put in public domain by the Corporate Affairs ministry, companies will have to go through various authorities like Income Tax department, Sebi and stock exchanges in case of mergers & acquisition.

The rules cover eight more chapters for implementation of Companies Act, 2013. Earlier this month, the ministry had proposed rules for 16 chapters of the new legislation.

The second tranche covers chapters on National Company Law Tribunal and Appellate Tribunal, Appointment and Remuneration of Managerial Personnel, Compromises, Merger and Amalgamations and Prospectus and Allotment of Securities.

Among others, one of the main features of the new legislation is setting up of the National Company Law Tribunal (NCLT) and Appellate Tribunal. Once in place, NCLT would replace the Company Law Board.

Appeals against the orders of NCLT would be heard by the National Company Law Appellate Tribunal.

Besides, draft norms have been issued for chapters on Special Courts (Mediation and Conciliation Panel), Registered Valuers, and Companies authorised to register under this Act.and Management and Administration.

While the new Companies Act has 470 sections spread across 29 chapters, the ministry has so far released draft rules for as many as 24 chapters. Draft rules for the remaining chapters are expected to be issued by the first week of October. End

The second tranche of draft rules would be open for public comments till October 19.