Changes are major ingredient of any Law. A law is always for the convenience and comfy of the public. When Lord Murray made astonishing efforts to replace Coin trade to Paper trade through his remarkable Merchant law which later turned into Negotiable instruments Act, I understood the pains of Law makers to work for the people, to the people through the Law.
I derived one such relishing feel when strings of modifications were issued last week by the MCA. As a legalite, I also applaud and welcome the care of MCA to issue such Notifications for the pleasure of public and Law.
In a series of circulars issued over the last week or so, the Ministry of Corporate Affairs (MCA) has sought to simplify various procedures under the Companies Act so that they can be completed in an efficient and expeditious manner. Following are the some of the prime matters:
· Online incorporation of companies within 24 hours. This would be significant as very few countries can boast of instantaneous incorporation of companies. This process is likely to be effective from 11 th of August.
· Guidelines for submission of reports by Regional Director (RD) / Registrar of Companies (RoC) under sections 391 to 394 of the Companies Act. This would simplify the procedure for achieving schemes of arrangement (merger, demerger, etc.) as past experience indicated delays and procrastinations during the court approval process where there were dissimilarities in approach of RD/RoC in various jurisdictions.(General Circular no. 53/2011)
· Other areas where procedures have been simplified include those for
(i)Obtaining the approval of the Central Government under section 297 of the Companies Act where directors are interested in a transaction;
(ii)Obtaining confirmation for shifting the registered office of a company from one state to another;
MCA has decided to delegate the shifting of registered office of company from CLB to ROC. All the petitions pending before CLB shall be transferred to respective ROC’s from the effective date of notification. This simplified process shall be likely to be effective from September 24.
(iii) Rectification of the register of charges as per section 141 of the Companies Act.
MCA has decided to delegate the shifting of from Rectification of the register of charges CLB to ROC. All the petitions pending before CLB shall be transferred to respective ROC’s from the effective date of notification. This simplified process shall be likely to be effective from September 24.
As I said all these are welcome changes for bearing and rearing of classy Law. As these developments are implemented, conduct of business will capture an ease and efficiency set-up in India.
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