MCA Notifies ‘Companies (Management and Admin.) Amendment Rules, 2016’

Companies (Management and Administration) Amendment Rules, 2016: MCA Notification with Amended Form MGT-6

The Ministry of Corporate Affairs (MCA) has notified the ‘Companies (Management and Administration) Amendment Rules, 2016’ effective from 23rd Sept. 2016 and has amended Form MGT-6, as under:

MCA Notification dt. 23 Sept. 2016 F. No. 1/34/2013 CL-V-Part-I

G.S.R. 908(E).-In exercise of the powers conferred by sub-sections (1) and (2) of Section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Management and Administration) Rules, 2014, namely:-

1. (1) These rules may be called the Companies (Management and Administration) Amendment Rules, 2016. (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Management and Administration) Rules, 2014 (hereafter referred to as principal rules), in rule 3,-

(a) in sub-rule (1), for the proviso, the following proviso shall be substituted, namely:-

“Provided that in the case of a company existing on the commencement of the Act, the particulars as available in the register of members maintained under the Companies Act, 1956 shall be transferred to the new register of members in Form No.MGT-1 and in case additional information, required as per provisions of the Act and these rules, is provided by the members, such information may also be added in the register as and when provided.”;

(b) in sub-rule (2), for the proviso, the following proviso shall be substituted, namely:-

“Provided that in the case of a company existing on the date of commencement of the Act, the particulars as available in the register of members maintained under the Companies Act, 1956 shall be transferred to the new register of members in Form No.MGT-1 and in case additional information, required as per provisions of the Act and these rules, is provided by the members, such information may also be added in the register as and when provided.”.

3. In the principal rules, in rule 9,-

(a) in sub-rule (1), the words “in duplicate” at both places where they occur, shall be omitted.

(b) in sub-rule (2, the words “in duplicate” ), at both places where they occur, shall be omitted.

4. In the principal rules, for rule 13 the following rule shall be substituted, namely:-

“13. Every listed company shall file with the Registrar, a return in Form No. MGT- 10, with respect to changes in the shareholding position of promoters and top ten shareholders of the company, in each case, representing increase or decrease by two per cent or more of the paid-up share capital of the company, within fifteen days of such change.”.

5. In the principal rules, in rule 17, in sub-section (2), in the Explanation, for the words “on working day”, the words “on any day except national holiday” shall be substituted.

6. In the principal rules, in rule 20, for sub-rule (2), the following sub-rule shall be substituted, namely:-

“(2) Every company which has listed its equity shares on a recognised stock exchange and every company having not less than one thousand members shall provide to its members facility to exercise their right to vote on resolutions proposed to be considered at a general meeting by electronic means:

Provided that a Nidhi, or an enterprise or institutional investor referred to in Chapter XB or Chapter XC of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 is not required to provide the facility to vote by electronic means:

Explanation.- For the purpose of this sub-rule, “Nidhi” means a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from and lending to, its members only, for their mutual benefit, and which complies with such rules as are prescribed by the Central Government for regulation of such class of companies.”.

7. In the principal rules, in rule 22, sub-rule (7) and sub-rule (14) shall be omitted .

8. In the principal rules, in rule 25, in sub-rule (1), in clause (e), the words “or such other place as may be approved by the Board” shall be omitted.

9. In the principal rules, for Form No. MGT-6, the following Form, shall be substituted, namely:-

FORM NO. MGT-6

[Pursuant to section 89(6) of The Companies Act, 2013 and pursuant to rule 9(3) of The Companies (Management and Administration) Rules, 2014]

Return to the Registrar in respect of declaration under section 89 received by the company

(…contd… please refer attachment)

MCA Notification dt. 23 Sept. 2016

Article/ Update Shared by:
CS Surinder Vashishtha, New Delhi Mobile: +91-9868074335; email:[email protected]

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