Applicability of relevant Amendments/Circulars/Notifications/Regulations etc.

Posted: 07/06/2011 in FINAL, Final Exam, IPCC, IPCC Exam, PCC, PCC Exam

Business Laws, Ethics and communication (IPCC) for November 2011, Examination:

SUBJECT

AMENDMENT

CONTENT

LINKS          FOR

REFERENCE

TheCompanies

Act, 1956

Sending              ofDocuments        by electronic mode The MCA through Circular No.  17/2011  dated  21st April, 2011 has clarified that a company would have complied  with  Section  53  of  the  Companies  Act, 1956, if the service of document has been made through electronic mode subject to some conditions. Circular

Final Examination

Paper 4: Corporate and Allied Laws

Applicability of relevant Amendments/Circulars/Notifications/Regulations etc. relating to Corporate and Allied Laws (Final) for November 2011, Examination:

SUBJECT

AMENDMENT

CONTENT

LINKS             FORREFERENCE
TheCompanies

Act, 1956

Section 212 The  Ministry  of  Corporate  Affairs  (MCA) through a General  Circular  No.  2/2011  dated  8th   Feb,  2011 decided that the permission for not attaching accounts of  subsidiary along with holding company’s accounts may  be  granted  on  a  general  basis  wherever  the conditions  prescribed  by  the  Ministry  are  complied with. Circular
TheCompanies

Act, 1956

Section 211 The MCA through Notification No. S.O. 301(E) dated 8th    Feb,  2011   issued   a  notification  on  General Exemption  whereby  the  prescribed  categories  of companies will be exempted from the disclosures of certain quantitative details required under Schedule VI Circular
TheCompanies

Act, 1956

Payment of Commission to Non-Whole Time Directors   of    the Company under Section 309(4)(b) The MCA through Press Release ID 69674 dated 8th Feb,   2011   issued   a   notification on Managerial Remuneration,  according  to  this,  Schedule  XIII  is being  amended  to  provide  that  unlisted  companies (which are not subsidiaries of listed companies) shall not  require   Government  approval  for  managerial remuneration in cases where they have no profits/ inadequate  profits,   provided  they  meet  the  other conditions stipulated in the Schedule. Circular
TheCompanies

Act, 1956

Payment             ofremuneration     by way of commission under         section

309(4)

The MCA through General Circular No. 4/2011 dated4th March, 2011 has decided that a company shall not require approval  of  the  Central  Government  for making   payment  of  remuneration by   way   of commission  to  its  Non-Whole  Time  Director(s)  in addition to the sitting fee if the total commission to be paid to all those Non- Whole Time Directors does not exceed 1% of the net profit of the company if it has a Whole Time Director(s) or 3% of the net profit of the company if does not have a Managing Director or Whole Time Director(s). Circular
TheCompanies

Act, 1956

DirectorsIdentification

Number  (DIN)  u/s

266B.

The MCA through General Circular No. 5/2011 dated 4th   March,  2011  has  simplified  the  procedure  for obtaining  Directors  Identification  Number  (DIN)  u/s 266B.  Circular
TheCompanies

Act, 1956

E-Governance The MCA through General Circular dated 9th  March, 2011 has decided to accept payments of value upto Rs. 50,000, for MCA 21 services, only in electronic mode w.e.f. 27th March, 2011. Circular
TheCompanies

Act, 1956

Schedule VI The MCA has revised Schedule VI pertaining to the preparation  of  Balance  Sheet  and  Profit  &  Loss Account with a view to harmonize and synchronize the general disclosure requirements under Schedule VI with  respect to Accounting Standards, IFRS and keeping in view the existing economic and regulatory environment. Circular
TheCompanies

Act, 1956

Prosecution        ofDirectors The MCA through General Circular No. 8/2011 dated 25th  March  2011,  has  issued  guidelines  regarding prosecution    of    directors    by    the    Registrar    of Companies, wherein  certain categories of Directors have     been     kept     out     of     the     purview     of prosecution/Penal   actions   for   defaults   committed under the Companies Act, 1956. Circular
TheCompanies

Act, 1956

Filing   of  BalanceSheet   and   Profit and Loss Account The MCA through General Circular No. 09/2011 dated 31st   March,  2011  has  mandated  certain  class  of companies to file balance sheets and profit and loss account for the year 2010-11onwards by using XBRL taxonomy. Circular
TheCompanies

Act, 1956

Section 217(2A) The MCA through Notification No. 289(E) dated 31st March,  2011  has  made  Companies  (Particulars  of Employees)  Amendment  Rules,  2011  by  amending Companies (Particulars of Employees) Rules, 1975  Circular
TheCompanies

Act, 1956

Section 314(1B) The MCA through Notification No. 303(E) dated 6thApril, 2011 has made the Director’s Relatives (Office or  Place  of  Profit)  Amendment  Rules,  2011  by amending  Director’s  Relatives  (Office  or  Place  of Profit) Rules, 2003 Circular
TheCompanies

Act, 1956

Appointment       ofCost Auditor The MCA through General Circular No. 15/2011 dated 11th   April,  2011  has  revised  the  procedure  for  the appointment of cost auditor under section 233B of the Companies   Act,   1956   to   be   followed   by   the companies and the cost auditor.  Circular
TheCompanies

Act, 1956

Amalgamation    ofGovernment

Companies

The MCA through General Circular No. 16/2011 dated 20th   April,  2011  has  simplified  the  procedure  for amalgamation   of   Government   Companies   under section    396   of   the   Companies   Act,   1956   in appropriate cases. Circular
TheCompanies

Act, 1956

Annual      Reportsthrough  electronic mode The  MCA  through  Circular No.  18/2011  dated  29th April, 2011 has clarified that the company would be in compliance of sections 219(1) of the Companies Act,1956, in case, a copy of Balance Sheet etc., is sent by electronic  mail  to  its  members  subject  to  some conditions. Circular
The      SEBIAct, 1992 SEBI (Issue    ofCapital and Disclosure Requirement) Regulations, 2009 SEBI (Issue of Capital and Disclosure Requirement) Regulations,  2009  as  amended  by  SEBI  (Issue  of Capital    and Disclosure   Requirements)    (Fourth Amendment) Regulations, 2010 dated 12th November, 2010. Circular

Non-Applicability  of  the  following  Amendments/Circulars/Notifications  in  

Corporate and Allied Laws (Final)

S.No. Subject Matter CA Final – Corporate and Allied Laws Website for reference
1. The Companies Bill, 2009 Not Applicable www.mca.gov.in
2. The   Easy   Exit   Scheme,2011 Not Applicable www.mca.gov.in
3. Companies (SecondAmendment) Act, 2002 [relating to Winding up] Not Applicable[Students are advised to study the General Provisions of winding up as covered under Paragraph 9.4 of the study material] www.mca.gov.in
4. Provisions       relating       toRevival  and  Rehabilitation of                   Sick-Industrial Companies Not Applicable www.mca.gov.in

Source: ICAI’s Student Newsletter

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