After 54 years India is going to keep in place a new law that will governed the way Indian Companies will be managed
As on date India has around 10,00,000+ Companies out of which 70% are active companies . Most of them are in the Private Limited format and very few are listed in the Stock Exchange .
What ever it may be certain provisons of the Act is applicable to all format of the companies . Wheather small or Big .
Indian finance profesiional have been waiting for this new law since last 8~10 years and ultimately it has been passed by the Loksabha just two days before the winter session end . Now all are waiting for the Act to be passed in the Rajya sabha . It is certain that it will be easily passed in the coming Budget session .
The most important part of this new Act is that it is very dynamic and will be guided by the rules to be framed by the MCA from time to time . As many as 70% of the provison of the new Act facilitate and will be guided by the rule to be prescribed . This was not the case in the old Act of 1958 in which only around 25% of the provision were guided by Rules . This will make the Act more dynamic and will not be redundant after few years .
Due to this the Rule to be framed is very critical .The Act which has been passed by Loksabha is not clear and has no meaning in the absence of Rule .
As per MCA the rule will be ready before the Budget session and will be open to public comments
As on date India has around 10,00,000+ Companies out of which 70% are active companies . Most of them are in the Private Limited format and very few are listed in the Stock Exchange .
What ever it may be certain provisons of the Act is applicable to all format of the companies . Wheather small or Big .
Indian finance profesiional have been waiting for this new law since last 8~10 years and ultimately it has been passed by the Loksabha just two days before the winter session end . Now all are waiting for the Act to be passed in the Rajya sabha . It is certain that it will be easily passed in the coming Budget session .
The most important part of this new Act is that it is very dynamic and will be guided by the rules to be framed by the MCA from time to time . As many as 70% of the provison of the new Act facilitate and will be guided by the rule to be prescribed . This was not the case in the old Act of 1958 in which only around 25% of the provision were guided by Rules . This will make the Act more dynamic and will not be redundant after few years .
Due to this the Rule to be framed is very critical .The Act which has been passed by Loksabha is not clear and has no meaning in the absence of Rule .
As per MCA the rule will be ready before the Budget session and will be open to public comments
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