Amendment in Companies Act, 1956

A little more than a half of the provisions of Companies Act 2013 came into force from 1st April 2014. Following this, several communications were received in the Ministry of Corporate Affairs drawing attention to certain practical difficulties concerning these provisions or seeking clarifications about the same. To facilitate understanding the difficulties and to explain the provisions an interactive session was held under the aegis of the National Foundation of Corporate Governance at New Delhi on 21st June 2014. Following exchange of views a number of points got resolved. Points have also been identified for elaboration through orders under Section 470 of the Act relating to removal of difficulties, amendments in certain Rules and through issue of clarificatory circulars and suitable exemptions. Four draft Notifications under section 462 of the Act have been tabled in Parliament for a month. Circulars have already been issued to provide greater clarity. The question of amending the Act would be considered in case the above measures prove insufficient.

This was stated by the Minister of Corporate Affairs ,Shri Arun Jaitley in a written reply to a question in Lok Sabha today.