Page 5 - Companies Act

Budget 2020 plans to amend Companies Act to decriminalise civil offences

In her second Budget presentation, the finance minister said tax harassment cannot be tolerated and added that wealth creators will be respected in the country

To ease burden on NCLT, govt notifies rules for winding up of companies

In a move that will help lessen the burden on the National Company Law Tribunal (NCLT), the government has notified the rules for winding up of companies under the companies law. The Corporate Affairs Ministry has notified the Companies (Winding Up) Rules, 2020, which would be effective from April 1. Petitions for winding up of companies are subject to various conditions, including thresholds on turnover and paid-up capital. Akila Agrawal, Partner & Head (M&A) at law firm Cyril Amarchand Mangaldas, said the rules seek to inter-alia reduce the burden of the NCLT by enabling summary procedures for liquidation to be filed with the central government. "Though the draft rules had made this available only for small companies, the final rules make it available to companies that have assets of book value not exceeding Rs 1 crore; and have not taken deposits beyond Rs 25 lakh or have no secured loans beyond Rs 50 lakh or turnover beyond Rs 50 crore or paid up capital beyond Rs 1 ...

Governing unlisted firms

Proposed norms are in the right direction

Top 10 biz headlines: India Inc gets legal relief, OYO's coffee plan & more

From criminal offences in the Companies Act being slated to be slashed to banks possibly taking a majority stake in DHFL, here are the top business headlines for Monday

Takeover norms for unlisted firms getting finalised, to be unveiled soon

Unlisted companies have no formal takeover code and shares are transferred on the basis of contracts and agreements

Disqualified parties barred from liquidation process, says IBBI

Such persons will also not be eligible to enter into any settlement or arrangement with the creditors of the insolvent company under Section 230 of the Companies Act, the IBBI has clarified

More than 1,000 individuals register with independent directors' databank

The databank is expected to become a comprehensive repository of both existing independent directors as well as individuals eligible and willing to be appointed as independent directors

Govt may ask unlisted firms to submit financial statements every quarter

The aim is to have updated financial details about systemically-important companies that are not listed, the official told PTI

Proposed changes to IBC may augur well, but apprehensions still remain

In its third year, IBC has managed to plug important gaps, but this is not the end of the road with issues coming to light at every turn

Unfinished agenda: Govt to introduce bill to decriminalise company law

The proposal to make violation of the requirements under Section 8 punishable only with fines is also being widely debated

No customs duty on transfer of goods from one SEZ to another: Expert

For accounting purposes, the depreciation can be worked out as per the Companies Act and for income tax purposes, as per income tax laws

Companies Act amendment likely to trigger easier rights issue norms

Vodafone Idea and Bharti Airtel both raised Rs 25,000 crore through a rights issue earlier this year

Cabinet may consider proposal to lower govt stake in CPSEs to less than 51%

Such a move is possible by amendment to Section 241 of the Companies Act

Proposed amendments to Companies Act may include easier rights issue norms

Telecom companies Vodafone Idea and Bharti Airtel both raised Rs 25,000 crore through a rights issue earlier this year

Companies Act: Panel wants further decriminalisation, easing of compliance

The panel suggests the government be authorised to raise the thresholds, which trigger applicability of Corporate Social Responsibility provisions

How govt's new AI-based system can help cos save non-compliance costs, time

Currently, all forms and documents are electronically filed with the MCA

Opening bell for class-action suits

The Companies Act does not prescribe a maximum cap on the damages that may be awarded

How the RBI can get its act together

In the concluding part of the series, the author draws attention to the central bank's problems that need urgent fixing

Companies push ahead with proposed share buyback plans after tax relief

Further, companies such as KPR Mill, which had withdrawn their buybacks following the unexpected tax outgo, have restored their buyback plan

Letter to BS: Start-up movement gains traction with much-needed reliefs

The government has shown positive intent in building a favourable ecosystem for start-ups