Monday, 31 July 2017

MCA amends the Incorporation Rules on 27th July 2017

THE COMPANIES (INCORPORATION) SECOND AMENDMENT RULES 2017
The Ministry of Corporate Affairs has amended the Companies (Incorporation) Rules, 2014 and notified the Companies (Incorporation) Second Amendment Rules, 2017. They shall come into force on the date of their publication in the official gazette. The Ministry has amended the provisions of Rule 28 (Shifting of Registered office within the same state) and Rule 30 (Shifting of Registered Office from one state or Union Territory another state). Briefly, no need to publish a notice in news paper and no need to serve individual notice to debenture holders, depositor and creditors of the Company in case of shifting of registered office within the same state but from the jurisdiction of one Registrar of Company to another.


Further, in case of shifting of registered office from one state to another state, the advertisement in the Form INC-26 in newspaper shall be made not more than 30 days before the date of filing of application and if no objections is received from any person in response to the advertisement, the application may be put-up for orders without hearing.    

AMENDMENTS BY CENTRAL GOVERNMENT



S.No.
Particulars
Details
1
Rule -28
SHIFTING OF REGISTERED OFFICE WITHIN THE SAME STATE
An application seeking confirmation from the Regional Director for shifting the registered office within the same State from the jurisdiction of one Registrar of Companies to the jurisdiction of another Registrar of Companies, shall be filed by the company with the Regional Director
2
Form to be filled
3
Documents as stated by amendment
(a)  Board Resolution for shifting of registered office
 (b) Special Resolution of the members of the company approving the shifting of registered office;
(c) a declaration given by the Key Managerial Personnel or any two directors authorized by the Board, that the company has not defaulted in payment of dues to its workmen and has either the consent of its creditors for the proposed shifting or has made necessary provision for the payment thereof
(d) a declaration not to seek change in the jurisdiction of the Court where cases for prosecution are pending
(e) acknowledged copy of intimation to the Chief Secretary of the state as to the proposed shifting and that the employees interest is not adversely affected consequent to proposed shifting"
4
For post amendment content refer provided link



S.No.
Particulars
Details
1
Rule -30
SHIFTING OF REGISTERED OFFICE FROM ONE STATE OR UNION TERRITORY TO ANOTHER STATE
(1) An application under sub-section (4) of section 13, for the purpose of seeking approval for alteration of memorandum with regard to the change of place of the registered office from one state Government or Union territory to another, shall be filed with the central Government
2
Form to be filled
Form No. lNC.23
3
Documents required (amended)
(a) a copy of Memorandum of Association, with proposed alterations;
 (b) a copy of the minutes of the general meeting at which the resolution authorizing such alteration was passed, giving details of the number of votes cast in favor or against the resolution;
(c) a copy of Board Resolution or Power of  Attorney or the executed vakalatnama, as the case may be

4
Unchanged provisions
(2)A list of creditors and debenture holders drawn up to the latest practicable date preceding the date of filing of application by not more than one month, setting forth the following details, namely:-
      (a) The names and address of every creditor and debenture holder of the company;
      (b) The nature and respective amounts due to them in respect of debts, claims or liabilities Provided that the list of creditors and debenture holders, accompanied by declaration signed by the company Secretary of the company, if any, and not less than two directors of the company, one of whom shall be a managing director, where there is one, stating that
         (i) they have made a full enquiry into the affairs of the company and, having done so, have concluded that the list of creditors are correct, and that the estimated value as given in the list of the debts or claims payable on a contingency or not ascertained are proper estimates of the values of such debts and claims and that there are no other debts of or claims against the company to their knowledge, and
      (ii) No employee shall be retrenched as a consequence of shifting of the registered office from one state to another state and also there shall be an application filed by the company to the Chief Secretary of the concerned State Government or the Union territory.

(3)  A duly authenticated copy of the list of creditors shall be kept at the registered office of the company and any person desirous of inspecting the same may, at any time during the ordinary hours of business, inspect and take extracts from the same on payment of a sum not exceeding ten rupees per page to the company.
(4) There shall also be attached to the application a copy of the acknowledgment of service of a copy of the application with complete annexure to the Registrar and Chief Secretary of the State Government or Union territory where the registered office is situated at the time of filing the application
5
Substituted
“the company shall at least fourteen days before the hearing”
. (5) The company shall, not more than thirty days before the date of filing the application in Form No. INC.23 -

    
(a)Advertise in the Form No.INC.26 in the vernacular newspaper in the principal vernacular language in the district and in English language in an English newspaper with the widest circulation in the state in which the registered office of the company is situated:
Provided that a copy of advertisement shall be served on the Central Government immediately on its publication.
 (b) serve, by registered post with acknowledgement due, individual notice, to the effect set out in clause (a) on each debenture-holder and creditor of the company; and
  (c) Serve, by registered post with acknowledgement due, a notice together with the copy of the application to the Registrar and to the Securities and Exchange Board of India, in the case of listed companies and to the regulatory body, if the company is regulated under any special Act or law for the time being in force.
6
Inserted
(6) There shall be attached to the application a duly authenticated copy of the advertisement and notices issued under sub-rule (5), a copy each of the objection received by the applicant, and tabulated details of responses along with the counter response from the company received either in the electronic mode or in physical mode in response to the advertisements and notices issued under sub-rule (5).
7
Objections (if any)
(7) Where no objection has been received from any person in response to the advertisement or notice under sub-rule (5) or otherwise, the application may be put up for orders without hearing and the order either approving or rejecting the application shall be passed within fifteen days of the receipt of the application.

(8)  Where an objection has been received,
     (i) The Central Government shall hold a hearing or hearings, as required and direct the company to file an affidavit to record the consensus reached at the hearing, upon executing which, the Central Government shall pass an order approving the shifting, within sixty days of filing the application.

    (ii) where no consensus is reached at the hearings the company shall file an affidavit specifying the manner in which objection is to be resolved within a definite time frame, duly reserving the original jurisdiction to the objector for pursuing its legal remedies, even after the registered office is shifted, upon execution of which the Central Government shall pass an order confirming or rejecting the alteration within sixty days of the filing of application
8
Order by C/G
(9) The order passed by the Central Government confirming the alteration may be on such terms and conditions, if any, as it thinks fit, and may include such order as to costs as it thinks proper:
Provided that the shifting of registered office shall not be allowed if any inquiry, inspection or investigation has been initiated against the company or any prosecution is pending against the company under the Act.

(10) On completion of such inquiry, inspection or investigation as a consequence of which no prosecution is envisaged or no prosecution is pending, shifting of registered office shall be allowed"
9
For post amendment content refer provided link



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