Providing clarity to stakeholders, the Ministry of Corporate Affairs has said provisions pertaining to various sections of new companies legislation notified so far would be applicable, instead of the provisions of the Companies Act, 1956.
The Ministry is in the process of notifying various sections of the Companies Act, 2013, which would replace the nearly six-decade old legislation that governs corporates in the country.
Last week, as many as 98 sections of the new law were notified by the Ministry. The new Companies Act is spread across 470 sections and would be implemented in a phased manner.
"It is hereby clarified that with effect from 12.09.2013, the relevant provisions of the Companies Act, 1956, which correspond to provisions of 98 sections of the companies Act, 2013 brought into force on 12.09.2013, cease to have effect from that date," the Ministry said in a circular issued late yesterday.
The clarification has come in response to requests from various quarters on whether the provisions of Companies Act, 1956, corresponding to 98 sections, would be applicable or not.
The entire Companies Act comprises of 470 sections and 29 chapters spread across nearly 300 pages, while detailed draft rules for 16 chapters have already been put in public domain for consultation process.
While the first tranche of draft rules have been released, the second set is expected to be issued by the Ministry tomorrow.
According to an official, all the draft rules are likely to be released by the first week of October.
