MCA July 2014

By September 9, 2014 December 20th, 2019 No Comments
Date Subject Amendment
General Circular No.
July 09, 2014 Clarification on form MGT-14
through STP mode
In order to simplify procedures
and with a view to ensure timely disposal of E-forms and keeping in view the
penal provisions for false declaration as contained in scetion 448 read with
section 447, under form MGT-14, all cases except for change of Name, change
of object, resolution for further issue of capital and conversion of
companies will be using Straight Through Process Mode.
S.O. 1820(E) July 09, 2014  Companies (Removal of Difficulties) Fifth
Order, 2014. 
In clause (76) of section 2,
definition of related party, sub-clause (v) states a public company in which
a director or manager is a director and holds (inserted
in place of ‘or holds’)
along with his relatives,
more than two per cent. of its paid-up share capital.
General Circular No.
July 11, 2014 Registration of names of the
Companies shall be in consonance with the provisions of the Emblems and Names
(Prevention of Improper Use)Act, 1950
It is directed that while
allotting names to Companies/Limited Liability Partnerships, the Registrar of
Companies concerned should exercise due care to ensure that the names are not
in contravention of the provisions of the Emblems and Names (Prevention of
Improper Use) Act, 1950 
G.S.R. (E) July 17, 2014 Companies (Specification of
deflnitions details) Amendment Rules, 2014
In the Companies (Speciflcation
of definitions details) Rules, 2014, in rule 3, after the words ‘a director’
the words ‘other than an independent director’ shall be inserted. Thus, an
independent director of the holding company or his relative with reference to
a company, shall not be deemed
to be a related party.
G.S.R. (E) July 17, 2014  Companies (Miscellaneous) Amendment Rules,
Any application or form filed
with the Central Government or Regional Director or Registrar (hereinafter
referred to as the “authority”) prior to the commencement of these
rules but not disposed off by such authority for want of any information or
document shall, on its submission, to the satisfaction of the authority, be
disposed off in accordance with the rules made under the Companies Act,1956.
General Circular No. 30/2014 July 17, 2014 Clarification on matters
relating to Related Party Transactions.
 It is clarified that that ‘related party’
referred to under Section 188 has to be construed with reference only to the
contract or arrangement for which the said special resolution is being
passed. Thus, the term ‘related party in the above context refers only to
such related party as may be a related party in the context of the contract
or arrangementfor which the said special resolution is being passed. It is
further clarified that transactions arising out of Compromises, Arrangements
and Amalgamations will not attract the requirements of Section 188 of 2013
Act. Moreover, the contracts enforced before April 1, under the old Act,
would not require fresh approval under Section 188 till the expiry of the
original term of such contracts.
General Circular No. 31/2014 July 19, 2014 Extension of validity of reserved names The validity of 1930 cases out
of 9522 for reservation of names which have expired as on the date of
circular has been extended. 
General Circular No. 32/2014 July 23, 2014 Clarification on transitional
period for resolutions passed Under the Companies Act, 1956.

 It is clarified that resolutions approved
or passed by companies under relevant applicable provisions of the Old Act
during the period from 1st September, 2013 to 31st March, 2014, can be
implemented, in accordance with provisions of the Old Act, notwithstanding
the repeal of the relevant provision subject to the conditions (a) that the implementation of the
resolution actually commenced before 1st April, 2014 and
(b) that this transitional
arrangment will be available upto expiry of one year from the passing of
the resolution or six months from the commencement of the corresponding
provision in New Act whichever is later.
July 24, 2014 Companies (Management &
Administration ) Second Amendment Rules, 2014)
The Companies (Management and
Administration) Rules, 2014 have been further amended as follows: (a) trust
created for seeting up of a venture capital fund, mutual fund or other funds
created as regulated by SEBI do not require to report to ROC about the beneficial
holding of shares in Fomr mGT 4, 5 and 6; (b) in Rule 13 the words
“ëither value or volume of the shares” and the Explanation have
been omitted; (c) A special notice required to be given to the company shall
be signed, either individually or collectively by such number of members
holding not less than one percent of total voting power or holding shares on
which an aggregate sum of not more than five lakh rupees has been paid up on the date of the
notice; and (d) Maintenance and inspection of document in electronic form is
an optional requirement.
 S.O. 1894 (E) July 24, 2014  Companies (Removal of Difficulties) Sixth
Order, 2014
In clause (76) of section 2,
definition of related party, sub-clause (iv) states a private company in
which a director or manager “or his relative”
is a member or director.
S.O.—-(E) July 25, 2014 Notification dated July 25th 2014. The Central Govemment has
notified that public companies having paid-up share capital of rupees one
hundred crore or more and annual tumover of rupees one thousand crore or more
which are engaged in multiple businesses and have appointed Chief Executive Officer
for each such business shall be the class of companies for the purposes of
the second proviso to sub-sectlon (1) of section 203 of the said Act (i.e.
companies mandatorily required to appoint of key managerial personnel).
July 31, 2014 General Circular No. 33/2014 –
Calrifiaction regardin applicability of section 139(5) and 139 (7) of the
Companies Act 2013
These provisions do apply to
government companies and government “controlled” companies where
“control” is to be determined as per the definition prescribed
under the New Act. Accoridngly,provisions of AOA and shareholders agreement, if
any are to be taken into consideration.

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