Expect Air India divestment to c…

  New Delhi: The Union M…

PM announces Rs 20,000-cr defenc…

  Lucknow: Prime Ministe…

Punjab CM meets Trudeau, Sajjan

  Amritsar: Punjab Chief…

Time to reflect on advancing tie…

  New Delhi: As India an…

Chief Secretary row: AAP MLA Ama…

  New Delhi: Aam Aadmi P…

Trudeaus offer prayers at Golden…

  Amritsar: Canadian Pri…

Second defence industrial corrid…

  Lucknow: Prime Ministe…

Canadian PM arrives in Amritsar

  Amritsar: Canadian Pri…

Chief Secretary row: Delhi Polic…

  New Delhi: Chief Minis…

Misty Wednesday morning in Delhi

  New Delhi: It was a mi…

«
»
TwitterFacebookPinterestGoogle+

The Central Government notifies the Companies (Amendment) Act, 2017 

Facebooktwittergoogle_plusredditpinterestlinkedinmail

The Central Government notified the Companies (Amendment) Act, 2017 (Amendment Act) on 3rd January, 2018. The provisions of this Amendment Act shall come into force on the date or dates as the Central Government may appoint by notification(s) in the Official Gazette. A few provisions in the Amendment Act have important bearing on the working of the Insolvency and Bankruptcy Code, 2016 (Code).

Section 53 of the Companies Act, 2013 prohibited issuance of shares at a discount. The Amendment Act now allowscompanies to issue shares at a discount to its creditors when its debt is converted into shares in pursuance of any statutory resolution plan such as resolution plan under the Code or debt restructuring scheme.

Section 197 of the Companies Act, 2013 required approval of the company in a general meeting for payment of managerial remuneration in excess of 11 percent of the net profits. The Amendment Act now requires that where a company has defaulted in payment of dues to any bank or public financial institution or non-convertible debenture holders or any other secured creditor, the prior approval of the bank or public financial institution concerned or the non-convertible debenture holders or other secured creditor, as the case may be, for such payment of managerial remuneration shall be obtained by the company before obtaining the approval in the general meeting.

Section 247 of the Companies Act, 2013 prohibited a registered valuer from undertaking valuation of any assets in which he has a direct or indirect interest or becomes so interested at any time during or after the valuation of assets. The Amendment Act now prohibits a registered valuer from undertaking valuation of any asset in which he has direct or indirect interest or becomes so interested at any time during three years prior to his appointment as valuer or three years after valuation of assets was conducted by him.

The Companies (Amendment) Act, 2017 is available www.ibbi.gov.in and www.mca.gov.in.

Leave a Reply

Your email address will not be published. Required fields are marked *

CAPTCHA Image

*