Companies Law

UAE makes women on board mandatory for private joint-stock cos from 2025

The United Arab Emirates on Wednesday announced mandating private joint-stock companies in the country to allocate at least one seat for women on their boards of directors after the completion of the current board's term. The United Arab Emirates' Ministry of Economy further announced that the implementation of this decision will commence in January 2025 and urged the private joint-stock companies to factor this requirement into their future board restructuring plans. This decision is a vital component of the nation's broader strategy to enhance diversity in the corporate sector and increase women's representation in leadership roles, the Ministry announced on Wednesday. The Ministerial Resolution 137 of 2024, which addresses the regulation of private joint-stock companies' governance and operations, follows a similar initiative previously applied to public joint-stock companies, it said, adding, the earlier decision has already yielded positive results, enhancing institutional ...

Centre amends regulations related to amalgamations under companies law

The government has amended certain rules governing mergers under the companies law and amalgamations involving a foreign holding company and its wholly-owned Indian subsidiary will now require prior RBI approval. Amendments have been made to the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 by the corporate affairs ministry. The changes are with respect to "transferor foreign company incorporated outside India being a holding company and the transferee Indian company being a wholly-owned subsidiary company incorporated in India" entering into a merger. In such cases, the ministry on Monday said both the companies shall obtain the prior approval of the Reserve Bank of India (RBI) and the transferee Indian company should also comply with the provisions of Section 233 under the Companies Act. Broadly, Section 233 pertains to mergers and amalgamations of certain companies. Sandeep Jhunjhunwala, Partner at Nangia Andersen LLP, said the trend of reverse flipping ha

Govt taking steps to cut pending cases under companies law: FM Sitharaman

The Ministry of Corporate Affairs (MCA) has taken several steps, including the withdrawal of prosecutions and compoundable cases, to reduce litigations under the companies law, Finance Minister Nirmala Sitharaman said Monday. Sitharaman, also the Union Minister of Corporate Affairs, said in Lok Sabha that 14,247 prosecutions were withdrawn in the first special drive conducted in 2017 and a decision has also been taken for withdrawing 7,338 compoundable cases identified in the second special drive in 2023. "Till July 15, 2024, a total of 6,294 applications for withdrawal have been filed before various courts. However, serious or non-compoundable offences will continue to be prosecuted," she said in Lok Sabha. The minister said the MCA has taken several steps to review pending prosecutions in various courts. In 2017 and later in 2022, a committee of senior officers of the ministry was set up to give recommendations on withdrawal of prosecutions. The objective was to free judicial cou

Govt starts centralised processing of filings under companies law, LLP Act

The government has operationalised the central processing centre for processing filings under the companies law and LLP Act in a "time-bound and faceless manner" as part of efforts to further improve the ease of doing business. Initially, 12 forms and applications under the companies law will be processed at the Central Processing Centre (CPC). From April 1 onwards, other forms and applications will be processed through the centre. "As of now, 4,910 forms have been received by CPC after commencing operations. The forms shall be processed a time-bound and faceless manner," the corporate affairs ministry said in a release on Friday. Later, forms/applications filed under Limited Liability Partnership (LLP) Act are also proposed to be centralised. Based on filing trends, the ministry said it is expected that about 2.50 lakh forms will be processed through CPC annually, once it is fully operational. With the establishment of CPC, the ministry noted that jurisdictional Registrar of ...

MCA planning new portal to streamline IBC cases, boost transparency

The IBBI would also be able to keep track of the happenings in the NCLT through this portal

S Korea orders Japanese cos to compensate wartime workers for forced labour

South Korea's top court ordered two Japanese companies to financially compensate more of their wartime Korean workers for forced labor, as it sided Thursday with its contentious 2018 verdicts that caused a huge setback in relations between the two countries. But observers say Thursday's ruling won't likely hurt bilateral ties much since Seoul and Tokyo, now governed by different leaders, are pushing hard to bolster their partnerships in the face of shared challenges like North Korea's evolving nuclear threats and China's increasing assertiveness. The Supreme Court ruled that Mitsubishi Heavy Industries must provide between 100 million and 150 million won ($76,700 and $115,000) in compensation to each of four plaintiffs bereaved families of its former employees who were forced to work for the company during Japan's 1910-45 colonial rule of the Korean Peninsula. The court also said Nippon Steel Corp. must give 100 million won (about $76,700) to each of seven Korean plaintiffs for ...

Ministry of Corporate Affairs to take back 7,338 cases under companies law

The corporate affairs ministry has decided to withdraw 7,338 prosecutions under the companies law that are pending before various courts as part of promoting the ease of doing business. Prosecutions related to serious non-compoundable offences such as cheating, fraud and acceptance of deposits would not be considered for withdrawal. In 2017, the ministry had withdrawn 14,247 prosecutions. Another 7,338 prosecutions pending before various courts will be withdrawn under Special Arrears Clearance Drive-II towards promoting ease of doing business and decriminalisation of compoundable offences under Companies Act, 2013, it said in a release on Friday. The withdrawal "will lead to a 21.86 per cent reduction in pending prosecutions being pursued by the central government," it added. The ministry had constituted a committee to undertake a thorough review of all the pending litigations. "Long pending prosecutions for compoundable offences have been identified for withdrawal. Prosecutions

Govt to introduce bills to amend insolvency laws in Parl's monsoon session

The government is planning to introduce bills to amend the companies and insolvency laws during the monsoon session of Parliament, a senior official said on Thursday. The session is likely to commence in late July or August. The corporate affairs ministry is implementing the Companies Act and the Insolvency and Bankruptcy Code (IBC). According to the official, amendments are being planned to the two laws, and bills in this regard are expected to be introduced in the monsoon session. Details about the proposed changes could not be immediately ascertained. On January 18, the ministry proposed a raft of changes to the IBC, including fast-tracking the process, expanding the scope of the pre-packaged framework and developing an electronic platform with minimal human interface. The ministry has received comments from the stakeholders on the changes proposed to the IBC. The IBC, which came into force in 2016, provides for a market-linked and time-bound resolution of stressed assets. It

Government to set up Centre for Processing Accelerated Corporate Exit

The government will set up a Centre for Processing Accelerated Corporate Exit (C-PACE) to process and dispose of applications for removal of company names from the records under the companies law. In a written reply to Lok Sabha on Monday, Minister of State for Corporate Affairs Rao Inderjit Singh said the centre will be established at Manesar in Haryana. "This initiative is likely to provide ease to such companies for closing their business as per provisions of chapter XVIII and getting their names removed from the Register of Companies," he said. C-PACE will process and dispose of applications for removal of names from the Register of Companies filed by companies, including private limited companies, under Section 248 of the companies law. A notification regarding C-PACE was issued on March 17 and the same would come into force from April 1. Section 248 of the Companies Act, 2013 provides for removal of name of company from the Register of Companies, if it is not carrying on any

Over 21,200 cases were pending before NCLT till January-end: Govt

As many as 21,205 cases, including 12,963 cases under the insolvency law, were pending before the National Company Law Tribunal (NCLT) at the end of January this year, the government said on Monday. Currently, one principal bench and 15 other benches of NCLT are operational. In a written reply to Lok Sabha, Minister of State for Corporate Affairs Rao Inderjit Singh said the benches of NCLT and National Company Law Appellate Tribunal (NCLAT) are being set up in a phased manner depending on quantum of workload and other factors. As of now, he said no proposal to set up any new bench of NCLT and NCLAT is under consideration. "As per information provided by NCLT, 21,205 cases were pending with NCLT benches as on 31.01.2023, including 12,963 cases under Insolvency and Bankruptcy Code (IBC), 1,181 cases of Merger and Amalgamation (M&A), and 7,061 other cases," the minister said. Citing data provided by the Insolvency and Bankruptcy Board of India (IBBI), Singh said that since the ...

Govt to set up central processing unit for forms filed under companies law

To ensure a faster response to corporates, the government will set up a central processing centre for handling forms filed with field offices under the companies law. Presenting the Union Budget for 2023-24, Finance Minister Nirmala Sitharaman on Wednesday also said that an integrated Investor Education and Protection Fund (IEPF) Authority will be set up to make the process of reclaiming shares and dividends easier. The Companies Act, 2013 is implemented by the corporate affairs ministry and the IEPF Authority also comes under the ministry. "A Central Processing Centre will be set up for faster response to companies through centralised handling of various forms filed with field offices under the Companies Act," Sitharaman said. According to the minister, for investors to reclaim unclaimed shares and unpaid dividends from the IEPF Authority with ease, an integrated IT portal will be established. Over the years, the government has been taking various measures to improve the ease of

557,000 firms struck off due to non-compliance with law provisions

More than 5.57 lakh companies were struck off the records in the last five years due to non-compliance with various provisions of the companies law, according to the government. Minister of State for Corporate Affairs Rao Inderjit Singh on Tuesday said that 5,57,055 companies were struck off under Section 248 of the Companies Act, 2013 read with the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 in the country in the last five years. They were struck off due to non-compliance with provisions of the Act, he said in a written reply to Rajya Sabha. He also said that the term 'shell company' is not defined under the Act. It normally refers to a company without active business operation or significant assets, which in some cases are used for illegal purpose such as tax evasion, money laundering, obscuring ownership and benami properties, he added. Further, the minister said the special task force set up by the government to look into the issue of

How IBBI's tighter compliance rules for resolution professionals will help

Insolvency professional agencies will have to designate/appoint a compliance officer

Sebi approves new option for appointment, removal of independent directors

Sebi on Friday approved introduction of a new option for appointment and removal of independent directors from the boards of companies. The move will provide flexibility in the approval process for appointment or removal of independent directors. Once the amended rules are in place, the appointment and removal of independent directors could be done by way of two parameters -- threshold for ordinary resolution and threshold for majority of minority shareholders. Currently, the appointment, re-appointment or removal of independent directors is to be made through a special resolution. Sebi's board, during its meeting held here on Friday, approved an alternative method for the appointment and removal of independent directors appointed for the first term. Under the alternate mechanism, if the special resolution for appointment of an independent director does not get the requisite majority, then two other thresholds -- for ordinary resolution and for majority of minority shareholders --

Employees may have to wait longer for new wage code rules to kick in

The changes under the new wage code can only be implemented across the country once the centre receives draft guidelines from all the states and UTs

Crisil launches new benchmark for investment vehicle aimed at the affluent

'Sub category' will help companies and clients in comparing various alternative investment funds.

Company Act overhaul: Experts call for careful, balanced approach

Company law recently went through an overhaul, decriminalising more than 48 offences in one go, removing the prison sentence, and doing away with or reducing the fines.

Decriminalisation in Companies Act a move in the right direction? Explained

As government revisits all economic laws, decriminalisation experts have called for a calibrated approach to ensure we don't end with toothless legislations and maintain the standards

Amendments to companies law receives President Ram Nath Kovind's assent

The corporate affairs ministry will now notify separately when various provisions would be coming into force, according to an official

RS passes bill to amend companies law; various offences decriminalised

Around 48 sections of the Companies Act, 2013 are being amended to decriminalise various offences