Second set of draft norms for Companies Act, 2013 released

NEW DELHI: The Ministry of Corporate Affairs (MCA) released the second set of draft rules to implement the new companies Act, 2013, which will replace the nearly six-decade-old legislation governing companies in the country. The draft rules would be open for comments till October 19.

With the second set, draft rules for 24 chapters of the new legislation have been released. The Companies Act, 2013, has 470 sections spread across 29 chapters. Draft rules for the remaining chapters will be issued by the first week of October.

The rules released on Friday cover 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 first set of draft rules, covering 16 chapters of the legislation, was issued on September 9. These chapters include rules on auditors, independent directors and CSR. For these, the ministry has so far received more than 600 comments.

Of the chapters released on Friday, one of the main features 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.