Saturday, January 17, 2015



discussedthe broad nature of the changes

the amendment has become law in the form of the Companies (Amendment) Act, 2015


Companies Act – 2013: Secretarial Audit - TaxGuru

Subject to an in-depth study of the new provision and its implications / ramifications, no denying, it has a commendable/laudable objective; in that, the mandated requirement has very rightly underlined the most crucial and predominant role of a company secretary in the field of corporate good governance. As is imagined, if implemented and complied with, DILIGENTLY and in all seriousness, the Secretarial audit, - NOW GIVEN, though overdue, THE SHAPE AND FORM OF A FORMAL LEGAL REQUIREMENT, -might be expected to usher a new era, and most of the vexing ‘irregularities’ and ‘illegalities’ galore coming to surface in recent times  almost perennially, to the chagrin and discomfort of the stakeholders in its comprehensive sense, and bring about a radical change in the functioning of 'companies'. In fact, in one's independent perception and longstanding conviction, there could be, if rightly viewed, no valid reason for not making the subject formal requirement applicable to all such entities being accorded the status of a 'company' within its extended meaning  under the new company law.


Jan 25

<> As per Rule 24 of the Companies (Incorporation) Rules, 2014 cited above, the contents of Form No. INC-21 “shall be verified by a Company Secretary in practice or a Chartered Accountant or a Cost Accountant in practice.”. As viewed and understood by one, the professional required to so verify has the onerous duty and responsibility to mindfully examine and fully satisfy himself about the correctness /truth of company’s claim/averment to have ‘commenced business’ at a given point in time.

That is not going to be that easy, as made to appear. As any professional having knowledge of income-tax law needs to be aware, there has always been, and continues to be, a grave doubt and basic controversy rested on the two mutually distinct concepts namely, – ‘set up’ and ‘commencement’. The line of distinction is, however, not so distinct/visible but invariably prove so thin as to be amenable to any definitive conclusion. And plethora of case law is seen to bear out the enormity of practical problems faced with, on a case to case basis, in taking a proper and/or acceptable view in that respect. In such a scenario, and having that in focus, it appears to have been entirely left to the wisdom of certifying professionals to embark on an intelligent inquiry, and diligently examine, before taking ‘a view’, case-wise. Company law experts group, preferably in co-ordination and through inter-action with tax experts, perhaps, are equipped to, after due deliberation, come out with specific points of useful guidance to the fraternity.

On a second thought: Apparently, because of the intricacies the matter entails, ICAI and ICSI, as the concerned governing bodies / regulatories, would do well, in all seriousness, to promptly make a study, if not so done by now, and be of reliably eminent guidance.

Jan 20

 Companies (Accounts) Amendment Rules, 2015

Looking at the series of such notifications, besides long line of departmental circulars, being issued off and on, as a routine affair, no right-THINKING (- MINDED) person, he be an expert or otherwise on company law, can afford not to appreciate the good sense / righteous substance in the criticism increasingly being floated in learned quarters that the 2013 company law has proved a ‘MESSED OPPORTUNITY’.

Earlier the Better, for one and all concerned ,and for the common good, that the vast community of lawyers and accountants at large come out openly with their impartial and upright viewpoints, particularly helpful, well-considered, and  multifaceted suggestions, on the ongoing exercise in implementing the new corporate law, in a piecemeal/truncated manner, much to the chagrin of the corporate world.

The learned experts at the august professional bodies, such as ICAI, looked to as active partners in shaping a resurgent India, it is hoped, would not fail but devoutly seize the opportunity, rise to the occasion in all sincerity , and make their profoundly valuable contribution in the matter of undeniable complicity.


Companies Act, 2013: Messed Opportunity - Moneylife

The NDA government has been as ham-handed as the UPA which thrust a messy Companies Act on us

One Person Co.

OPC – One Person Company – The next big thing – TaxGuru

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