Notifications Issued by Ministry of Corporate Affairs (MCA) 2017

MCA NOTIFIES COMPANIES (ACCEPTANCE OF DEPOSITS) AMENDMENT RULES, 2017[1]

Ministry of Corporate Affairs notifies Companies (Acceptance of Deposits) Amendment Rules, 2017 vide Notification No. G.S.R. 454(E) dated May11, 2017. The notification provides for amendments in Rule 2(1) (c)(xviii) and Rule 5(1), of the Companies (Acceptance of Deposits) Rules, 2014, namely:

(a)In Rule 2,in sub-rule (1), in clause (c), in sub-clause (xviii), after the words “Domestic Venture Capital Funds” the words “Infrastructure Investment Trusts” shall be inserted.

(b)In Rule 5, in sub-rule (1), for the proviso, the following proviso shall be substituted, namely:—

“Provided that the companies may accept deposits without deposit insurance contract till the March 31, 2018 or till the availability of deposit insurance product, whichever is earlier”

 

MCA ISSUED CLARIFICATION ON APPLICABILITY OF SECTION 16(1)(a) OF COMPANIES ACT, 2013 WITH REFERENCE TO CASES UNDER CORRESPONDING PROVISIONS OF COMPANIES ACT, 1956[2]

Ministry of Corporate Affairs issued a clarification on applicability of section 16(1)(a) of Companies Act, 2013 with reference to cases under corresponding provisions of Companies Act, 1956 vide Circular No.4/2017 [F.NO.17/89/2016-CL-V], dated 16-5-2017.

A representation was received from Regional Director, Mumbai, seeking clarification as to:

“Whether Regional Directors can entertain, fresh applications under section 16 of the Companies Act, 2013, which states the provisions for Rectification of name by the Central Government, in respect of applications which were earlier rejected by them under Companies Act, 1956 on the ground of being time-barred as the prescribed period of twelve months had been completed (under section 22(1)(ii)(b) of the Companies Act, 1956), since no limitation period has been specified under Section 16 of the Companies Act, 2013.”

In consultation with the D/o Legal Affairs, the Ministry of Corporate Affairs clarified that the applications which were rejected under section 22(1)(b) of the Companies Act, 1956 on the ground that such applications were made after the requisite period of 12 months specified therein, cannot apply afresh under section 16(1)(a) of the Companies Act, 2013 as the extinguished limitation cannot be considered to be revived even if no limitation period has been prescribed in the said section under the new Act.

 

NOTIFICATION ISSUED BY MCA FOR PROVISIONS OF CLAUSE (a) to (d) OF SECTION 2 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 TO BE ENFORCED FROM APRIL 1, 2017[3]

Ministry of Corporate Affairs notifies 1st April, 2017 as the date on which the provisions of clause (a) to clause (d) of section 2 of the Insolvency and Bankruptcy Code, 2016 relating to voluntary liquidation or bankruptcy shall come into force.

According to the provisions of Section 2 of the Insolvency and Bankruptcy Code, 2016, the Code shall be applicable to:

• any company incorporated under the Companies Act, 2013 or under any previous company law,
• any other company governed by any special Act,
• any Limited Liability Partnership (‘LLP’) incorporated under the LLP Act, 2008,
• such other body incorporated under any law as notified by the Govt., and
• partnership firms and individuals, in relation to their insolvency, liquidation, voluntary liquidation / bankruptcy.

MCA by means of an explanatory memorandum further clarified that by giving retrospective effect to this notification, it is certified that no one is being adversely affected and giving retrospective effect to this notification is purely procedural in nature.

 

[1] http://www.mca.gov.in/Ministry/pdf/CompaniesAcceptanceofDeposits_12052017.pdf

[2] http://www.mca.gov.in/Ministry/pdf/Circular04_2017_17052017.pdf

[3] http://www.egazette.nic.in/WriteReadData/2017/176016.pdf