Companies (Amendment) Ordinance, 2018
Ministry Of Law and Justice (Legislative Department) issued notification New Delhi, the 2nd November, 2018 regarding the MCA – Companies (Amendment) Ordinance, 2018 and details as follows.
THE COMPANIES (AMENDMENT) ORDINANCE, 2018 No 9 OF 2018 Promulgated by the President in the Sixty-ninth Year of the Republic of India.
An Ordinance further to amend the Companies Act, 2013.
WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action;
Now, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance:— I.
(1) This Ordinance may be called the Companies (Amendment) Ordinance, 2018.
(2) It shall come into force at once.
Short title and commencement.
THE GAZE 1 1 h OF INDIA EXTRAORDINARY
Amendment of section 2.
Insertion of new section 10A.
Commencement of business, etc.
- In section 2 of the Companies Act, 2013 (hereinafter referred to as the principal Act), in clause (41),—
(a) for the first proviso, the following provisos shall be substituted, namely:—
“Provided that where a company or body corporate, which is a holding company or a subsidiary or associate company of a company incorporated outside India and is required to follow a different financial year for consolidation of its accounts outside India, the Central Government may, on an application made by that company or body corporate in such form and manner as may be prescribed, allow any period as its financial year, whether or not that period is a year:
Provided further that any application pending before the Tribunal as on the date of commencement of the Companies (Amendment) Ordinance, 2018, shall be disposed of by the Tribunal in accordance with the provisions applicable to it before such commencement”;
(b) in the second proviso, for the words “Provided further that”, the words “Provided also that” shall be substituted.
- After section 10 of the principal Act, the following section shall be inserted, namely:—
“10A,(1) A company incorporated after the commencement of the Companies (Amendment) Ordinance, 2018 and having a share capital shall not commence any business or exercise any borrowing powers unless—
(a) a declaration is filed by a director within a period of one hundred and eighty days of the date of incorporation of the company in such form and verified in such manner as may be prescribed, with the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of making of such declaration; and
(b) the company has filed with the Registrar a verification of its registered office as provided in sub-section (2) of section 12.
(2) If any default is made in complying with the requirements of this section, the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees.
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