Corporate Updates – 29-07-2016

MCA:

MCA has notified the Companies (Accounts) Amendment Rules, 2016 which shall come into force on the date of their publication in the Official Gazette. As per the Amendment rules, if a Company is a Wholly-owned Subsidiary (‘WOS’) or a partially WOS of any other company and all its members, whether entitled to vote or not do not object the Company for not presenting Consolidated Financial Statement (‘CFS’); and its securities are not listed or is not under the process of listing; and its Ultimate Holding or intermediate holding company files the CFS with Registrar in accordance with Accounting Standards, then the Company is not under the obligation to prepare CFS. Further, the Board Report shall now include highlights of the performance of subsidiaries, associates and joint venture companies and their contribution to the overall performance of the company during the period rather than a report on the performance and financial position of the same. Also, the Internal Auditor may be an individual or a partnership firm or a body corporate. Further, now a Cost Accountant whether engaged in practice or not can be appointed as an Internal Auditor. Further, the Formats for Form AOC-1 and Form AOC-4 have also been modified.

MCA:

MCA has notified the Companies (Incorporation) Third Amendment Rules, 2016 which shall come into force on the date of their publication in the Official Gazette. The amendment has brought about many changes in the said rules inter alia prohibiting only a natural person from being a member and a nominee of more than a One Person Company. Further, the requirement of Form INC-10 has been omitted for incorporation of a Company. Rule 26 has also been amended which now provides for every Company having a website to disclose/publish its name, address of its registered office, the CIN, Telephone number, fax number if any, email and the name of the person who may be contacted in case of any queries. Forms INC-27 and INC-11 have been amended and new forms for ‘Advertisement to be published in the newspaper for conversion of Unlimited Liability into Limited Liability Company’ and ‘Certificate of Incorporation pursuant to conversion of Unlimited Liability Company into Limited Liability Company’ have been inserted in the principal rules.