October 21, 2016
- Introduction of Companies (Mediation and Conciliation) Rules: For expediting resolution of the pending disputes, Central Government has introduced the Companies (Mediation and Conciliation) Rules 2016. The said rules prescribe the procedure for the empanelment of mediator or conciliator, their qualifications, disqualifications, appointment of mediator or conciliator, time limit for conducting mediation or conciliation, procedure for conducting mediation or conciliation, effect of the finalization of mediation or conciliation etc., For more details, please click on the link above.
- Commencement of applicability of certain sections under the Companies Act, 2013 The Central Government hereby appoints 9th September, 2016 as the date on which the provisions of section 227, clause (b) of sub-section (1) of section 242, clauses (c) and (g) of sub-section (2) of section 242, section 246 and sections 337 to 341 (to the extent of their applicability for section 246), of the said Act shall come into force Section 227: Legal advisers and bankers not required to disclose certain information to Tribunal or Central Government or Registrar Clause (b) of sub-section (1) of Section 242: Power of Tribunal to wind up the Company on just and equitable ground. Clauses (c) of sub-section (2) of section 242: Tribunal may issue an order, in the case of a purchase of its shares by the company, the consequent reduction of its share capital; Clauses (g) of sub-section (2) of section 242: Tribunal may issue an order, setting aside of any transfer, delivery of goods, payment, execution or other act relating to property made or done by or against the company within three months before the date of the application under this section, which would, if made or done by or against an individual, be deemed in his insolvency to be a fraudulent preference Section 246: Application of certain provisions to proceedings under section 241 or section 245. Section 337 to 341: Penalties and liabilities on company and officers
- Companies (Management and Administration) Amendment Rules, 2016: The Ministry of Corporate Affairs has vide its notification dated September 23, 2016 amended the Companies (Management and Administration), Rules 2014 by way of Companies (Management and Administration) Amendments Rules, 2016 which is effective from September 23, 2016. For detailed analysis of the amendments made to the above rules please refer to our article covered under section "Insight" of this newsletter. Detailed text of the rules can be viewed on the above captioned link.