Easing of Compliance Norms Under Companies Act

Easing of Compliance Norms Under Companies Act

After commencement of various provisions of the Companies Act, 2013 and rules thereunder, various issues received from Industry Chambers and stakeholders were examined in consultation with stakeholders. In order to address the issues received, certain rules have been amended. The compliance norms, wherever changed have been done keeping in view the need to strike a balance between regulatory requirements and ease of doing business and without compromising on the Board’s accountability to the members of the company. The objective behind the amendment of Rule 8 of the Companies (Meetings of Board and its Powers) Rules, 2014 is to allow the Board to pass resolutions to take note of appointments or removal of one level below the Key Managerial Personnel, to take note of disclosure of director’s interest and shareholding, etc. as contained in sub-rule (3), (5), (6), (7), (8) and (9) of the said Rule without holding a meeting.

This was stated by Shri Arun Jaitley, Union Finance Minister in written reply to a question in the Rajya Sabha today.

National Foundation for Corporate Governance

The objectives of National Foundation for Corporate Governance (NFCG) set up in 2003, as per the Trust Deed, are as under:

To provide a platform to deliberate issues relating to good corporate governance as the key to sustainable wealth creation;

To sensitize corporate leaders on the importance of good corporate governance, self-regulation and directorial responsibilities-statutory, social and environmental;

To stimulate and to facilitate exchange of experiences and ideas between corporate leaders, policy makers, regulators, law enforcing agencies, non government organizations and voluntary agencies with a view to developing a framework for corporate governance reforms in the context of liberalization and globalization;

To provide research, training, practice, capacity building, standard setting, advocacy, rating, monitoring, recognition and related support in the field of corporate governance;

To provide financial or any other assistance directly or indirectly for activities which seek to promote corporate governance including research and training;

To develop strategies that enhance value for all stakeholders and ensure long term benefits to the shareholders and the society at large;

To establish and deepen links with organizations in various parts of the world which promote corporate governance for exchange of ideas and for collaborative actions, projects and programmes;

To institute national awards and recognitions for excellence in corporate governance and develop a system of corporate governance rating;

To collaborate and to support, directly or indirectly, the initiative of any individual, group, organization or institution in promoting corporate governance;

To develop a code of best practices for corporate governance taking into consideration the international examples and to promote its voluntary adoption by the corporate bodies;

To prepare, print and publish any papers, periodicals or newspapers, books or leaflets either on its own or in collaboration with other persons/entities through print or other media and to contribute to any papers or periodicals to disseminate information and knowledge in the area of corporate governance;

To facilitate, promote, commend and collaborate on the proposals from individuals, associations and organizations for funding by national, international and multi-lateral organizations as also industry-associations, regulators and governments;

To provide advice, consultancy and technical and managerial support to the beneficiaries of the Trust’s programmes through a network of advisors drawn from the industry and institutions of excellence; and

Other related objects.

With the objective of fostering a culture of good corporate governance, NFCG has accredited forty-four premier Indian Institutions/Organizations such as IITs, IIMs, National Law Universities etc. as National Centres for Corporate Governance. These Centres conduct seminars, conferences, workshops, directors’ orientation programmes etc. for promoting good corporate governance and also carry out research works in this field. NFCG is also working closely with international institutions like the Organisation for Economic Co-operation and Development and Asian Corporate Governance Association to promote good corporate governance practices through joint initiatives such as workshops, seminars, discussion forums etc. Till the end of 2014-15, 248 events have been organized and 27 research works completed under the aegis of NFCG, besides publication of a compendium on corporate sector and inclusive growth. The research reports of the Foundation, which include subjects such as the role of independent directors, CSR, corporate governance in energy sector, reforms in banking sector etc. have also been hosted on its website for the benefit of the stakeholders.

This was stated by Shri Arun Jaitley, Union Finance Minister in written reply to a question in the Rajya Sabha today.


Withdrawal of Cases by Registrar of Companies

Registrars of Companies have withdrawn the following number of prosecution cases, filed against various companies during the last three years and the current year:

Current Year
No. of cases withdrawn

The cases withdrawn relate to defaults in filing of Balance Sheets and Annual Returns for respective years. Broadly, reasons for withdrawal are:

·                     The companies had already made the default good by filing the Balance Sheets and Annual Returns.
·                     The companies were found to be defunct/non active for a period of three years and above and continuing with prosecution in such cases would have been futile. Such cases were processed for striking off such companies u/s 560 of the Companies Act, 1956.
·                     The companies had compounded offences in terms of section 621A (4) (d) of the Companies Act, 1956.

This was stated by Shri Arun Jaitley, Union Finance Minister in written reply to a question in the Rajya Sabha today.

Easing of Compliance Norms Under Companies Act Easing of Compliance Norms Under Companies Act Reviewed by Ajit Kumar on 9:41 AM Rating: 5

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