Circulation of copy of Companies (Amendment) Act, 1999 - Companies Law - CIRCULAR NO. 3/99,

CIRCULAR NO. 3/99, DATED 4-5-1999, ISSUED BY THE DEPARTMENT OF COMPANY AFFAIRS, MINISTRY OF LAW, JUSTICE COMPANY AFFAIRS Subject:- Circulation of copy of Companies ( Amendment ) Act, 1999 As you are aware, the Companies Act, 1956 has recently been amended through the Companies (Amendment) Act, 1999 (No. 21 of 1999). 2. The Act is to be deemed to have come into force on 31 -10-1998. (It may be recalled that earlier, the Companies (Amendment) Ordinance, 1998 had been promulgated by the President on 31-10-1998. 3. This Act repeals the Companies (Amendment) Ordinance, 1999 promulgated on 7-1-1999. 4. The salient features of this Amendment Act is the following : The Infrastructure Development Finance Company Limited has been recognised as one of the Public Financial Institutions. Companies have been allowed to buy-back their own securities. Companies have been enabled to issue "Sweat Equity - i.e., shares issued at a discount or for consideration other than cash - for providing, know-how or making available rights in the nature of intellectual property rights or value additions. Facility for nomination has been provided for the benefit of share/ debenture/deposit holders. An Investor Education and Protection Fund is to be established. National Advisory Committee on Accounting Standards for Companies to be established. Companies have been freed from obtaining prior approval of the Central Government for their inter-corporate investment/lending proposals.