Govt issues winding up, cost audit draft rules under Cos Act

Public as well as stakeholders can provide comments on draft norms related to winding up till Dec 19

Pushing forward the new companies law, the government today issued the final set of draft rules, relating to winding up of firms and cost audit.

With the latest two tranches, the Corporate Affairs Ministry - which is implementing the Companies Act, 2013 - has completed issuance of all draft rules for the new legislation.

So far, draft norms have been issued in six tranches.

The fifth tranche relates to draft rules for winding up while the sixth set pertains to cost audit, according to an official release.

The public as well as stakeholders can provide comments on draft norms related to winding up till December 19, whereas the last date for submitting suggestions on cost audit is December 6.

The new legislation, that replaces the nearly six-decade old law governing corporates in the country, was approved by the Parliament in August. It aims to strength measures to protect investor interests and ensure stringent steps to deal with corporate misdoings, among others.

Another provision requires certain class of profitable companies to shell out at least two per cent of their three-year average annual profit towards social welfare activities.