Companies Act: 98 Sections Notified; Lawyers Worried!
Published on Sat, Sep 14,2013 | 18:39, Updated at Sat, Sep 14 at 19:13Source : Moneycontrol.com
The Ministry of Corporate Affairs notified 98 Sections of the Companies Act, 2013 on 12th September. These provisions of the Act do not require notification of Rules.
Payaswini Upadhyay got leading General Counsels and Corporate Lawyers to give their first reactions.
Bharat Vasani, Group General Counsel, Tata Group
“I must confess that I was surprised to see this notification. It is not very clear to me as to why MCA was in such a tearing hurry to notify those 98 sections when only a part of the draft rules were released for public comments just a few days ago. In my view, it would have been advisable to notify those sections once the Rules were finalised and the Corporate Sector had digested the new law.
Section 465 of the Act which deals with repeal and saving has not been notified. As a result, the entire 1956 Act will continue to remain in full force and effect. Hence the notification of a few sections has created confusion which could have been avoided. Given that the Companies Act is a basic charter for the corporate sector like the Constitution of India, it is always advisable to give adequate time to create a