New Delhi: The government has notified 98 out of the 470 sections of the new Companies Act, the corporate affairs ministry said in a release late Thursday evening—indicating that the government is moving apace to implement the new law.
The sections made public on Thursday do not require rules for their implementation. The other sections will be notified later by the ministry.
The sections that have been notified on the ministry’s website relate to share capital, associate companies, control, private companies, subsidiary companies, fraud, the newly proposed National Company Law Tribunal, insider trading, private placement and quorum of meetings.
The ministry is implementing the new law in phases, the release said.
“The provisions of the new Act which require statutory/regulatory consultation or functioning of new bodies or prescription of relevant rules/forms will be brought in force after the preparatory action is completed,” the release said.
On 9 September, the corporate affairs ministry had released draft rules in the first of three tranches.
The remaining two tranches are likely to be issued on 16 and 24 September, Mint had said in a report on 9 September.
The draft rules were spread over 16 chapters, including accounting policies, appointment of auditors and directors, the revival of companies, prevention of mismanagement, and the incorporation of companies outside India.
The ministry had invited responses from stakeholders on the first tranche of draft rules by 8 October.
On 14 August, Parliament passed the new companies Bill, which overhauls the Companies Act of 1956. The new law is aimed at easing the process of doing business in the country and improving governance by making firms more accountable.
The Companies Act is a detailed statute which provides the skeletal framework for operations and daily functioning of a company along with the duties of those in charge of companies, particularly directors and promoters.