November 05, 2018

President gives assent to promulgation of the Companies Amendment (Ordinance), 2018

Based on the recommendations of the Committee appointed by the Government to review offences under the Companies Act, 2013, the President has assented to the Ordinance which has been promulgated with effect from 02 November, 2018. The main amendments are as under:
  • Enlarging the pecuniary jurisdiction of Regional Director by enhancing the limit upto Rs. 25 Lakh as against earlier limit of Rs. 5 lakh under section 441 of the Act.
  • Vesting in the Central Government the power to approve the alteration in the financial year
  • Central Govt. will now have power to approve conversion of public companies into private companies. Applications pending before NCLT on the commencement of the date of ordinance will continue to be heard by NCLT.
  • Re-introduction of filing of declaration of commencement of business provision after incorporation of the company
  • Shifting of jurisdiction of 16 types of corporate offences from the special courts to in-house adjudication
  • The penalty for small companies and one person companies has been reduced to half of that applicable to normal companies
  • Holding of directorships beyond permissible limits to trigger disqualification of such directors
  • Greater disclosures with respect to public deposits, greater accountability with respect to creation, modification and satisfaction of charges
  • Non-maintenance of registered office to trigger de-registration process
  • Strengthening in-house adjudication mechanism.
You can read full text of the Ordinance at the following link: http://egazette.nic.in/WriteReadData/2018/191731.pdf
 
For any details and clarifications, please feel free to write to Mr. Satwinder Singh at satwinder@vaishlaw.com