ICAI’s 170 Nos. Frequently Asked Questions (FAQs) on “the Companies Act, 2013”
To facilitate the understanding and interpretation of the provisions of Companies Act, 2013, the ICAI has issued a set of Frequently Asked Questions (FAQs) for help and guidance of stakeholders/ members, as under:
The Companies Act, 2013 was enacted to improve Corporate Governance and better transparency in the corporate sector which is imperative to infuse confidence amongst investors in Indian market and abroad and to further strengthen regulations for the companies, keeping in view the changing economic environment as well as the growth of our economy. The Ministry of Corporate Affairs has been taking proactive initiatives by making the existing law simple and comprehensive fostering a positive environment for investment and growth.
There are 470 sections in the Companies Act, 2013 but various provisions of the Act were notified in the last two and a half year in a phased manner.
The Companies (Amendment) Bill, 2016 is also before the Parliament where large amendments to the Act have been proposed that were necessary for proper and effective implementation o the Companies Act, 2013. Institute has contributed substantially for the proposals in the Bill. Also, wherever there are amendments proposed in the Bill, the same have been incorporated in the respective sections.
In view of the extent and scope of changes in the new Act, the stakeholders took some time to come to terms with the new provisions, and faced some difficulties in the implementation of the Act.
To facilitate the understanding and interpretation of the provisions of Companies Act, 2013, the Corporate Laws & Corporate Governance Committee decided to bring out a publication on the Frequently Asked Questions in the Companies Act 2013.
The publication has been designed in a question and answer format to assist our members and fellow professionals in mitigating various queries relating to the Companies Act, 2013.