Govt releases second set of draft rules for new Companies Act

Sep 20 2013, 16:00 IST
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SummaryThe Companies Act, 2013, has 470 sections spread across 29 chapters.

The government today released the second set of draft rules for the implementation of landmark Companies Act, 2013, that will replace the nearly six-decade old legislation governing corporates in the country.

Draft rules for eight more chapters of the new Companies Act have been issued by the Corporate Affairs Ministry today. With the second set, draft rules have been released for as many as 24 chapters of the new legislation.

The Companies Act, 2013, has 470 sections spread across 29 chapters.

The latest tranche covers chapters on National Company Law Tribunal and Appellate Tribunal, Special Courts (Mediation and Conciliation Panel), Prospectus and Allotment of Securities, and Management and Administration.

Besides, draft norms have been issued for chapters on Appointment and Remuneration of Managerial Personnel, Compromises, Merger and Amalgamations, Registered Valuers, and Companies authorised to register under this Act.

The second tranche of draft rules would be open for public comments till October 19, the Ministry said.

Among others, one of the main features of the new legislation is setting up of the National Company Law Tribunal (NCLT) and Appellate Tribunal. Once in place, NCLT would replace the Company Law Board.

Appeals against the orders of NCLT would be heard by the National Company Law Appellate Tribunal. On September 9, the Ministry had come out with the first set of draft norms that covered 16 chapters of the new legislation.

Draft rules for the remaining chapters are expected to be issued by the first week of October.

For the first tranche, the Ministry has so far received more than 600 comments.

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