Corporate Updates – 04-07-2016

MCA:

Ministry of Corporate Affairs has notified Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016 which shall come into force from the date of their publication in the Official Gazette. The amended rules have omitted the requirement of filing Form MR-1 for the appointment of Chief Executive Officer (CEO), Company Secretary and Chief Financial Officer (CFO).Consequently, MCA has also revised Form MR-1(Return of appointment of MD/WTD/Manager). Further, the Board Report shall now include the ‘names of the top ten employees in terms of remuneration drawn’ in place of ‘name of every employee’ receiving remuneration above the prescribed limit. The said prescribed limits have also been revised in the amendment.

MCA:

Ministry of Corporate Affairs has clarified the position of appointment of Auditors under the provisions of the Section 139(2) of the Companies Act, 2013 through the Companies (Removal of Difficulties) Third Order 2016 which is effective from 01/04/2014. The difficulties have arisen regarding compliance with the provisions of third proviso to sub-section (2) of Section 139 in so far as they relate to the period within which companies would comply with provisions of sub-section (2) of section 139 of the said Act, The MCA has issued the Order to remove the above said difficulties. Time period to comply with rotation changed in a logical manner. Now instead of 3 years from the date of commencement of the Act, time period given till 1st AGM held after 3 years by substituting the new proviso in place of the existing third proviso to Section 139(2).

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