Millennium Post

Govt simplifying procedures under new companies law

The Companies Act, 2013 — that replaces the nearly six-decade old law governing corporates in the country — came into effect from 1 April, 2014 has received much resistance from corporate sector. Many stakeholders have raised concerns about certain aspects of the new Act and the ministry — which is implementing this law — is taking steps to address the issues.

Corporate Affairs Secretary Naved Masood has said the ministry is open to suggestions and feedback in understanding corporate needs. ‘The ministry is continuously working on simplifying  procedures for smooth implementation of the new Companies Act, by issuing several notifications, and circulars on relevant provisions of the Act,’ Masood has written in the latest issue of the ministry's monthly newsletter.

In recent weeks, the ministry has come out with various circulars and notifications, including those related to corporate social responsibility (CSR) under the new Act. Earlier in August, Minister of State for Corporate Affairs Nirmala Sitharaman had said that amendments to the new Act might not even be necessary if stakeholders feel relieved with changes being made in the rules.

In July, the union  government had told Parliament that amendments to the Companies Act, 2013 would be considered only if statutory orders and changes to rules do not address the practical difficulties in implementing the legislation.
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