Background and Commencement of certain sections under Companies (Amendment) Act, 2019



THE COMPANIES (AMENDMENT) ACT, 2019


Background:

This Act was further to amend the Companies Act, 2013.



•         Initially, An ordinance was issued by the president of India.
·         Promulgated On 2nd of Nov 2018.
·         It was Called Companies (Amendment) Ordinance, 2018.
·         Thereafter, the bill was put on parliament for consideration but could not be passed in the Upper house of parliament.

•         The said Ordinance ceases to operate on 21st Jan 2019.
·         To give the continued effect of said provisions again the president of India announced the second ordinance called Companies (Amendment) Ordinance, 2019.
·         It shall be deemed to be effective from 2nd of Nov 2018.


•         And the Bill was finally passed in parliament.
·         On 25th July 2019, again bill was put on the parliament for consideration and that time it was passed.
·         President accent was given on 31st July 2019.
·         Now Called the Companies (Amendment) Act, 2019.

The Section 1 of  Companies Amendment Act, 2019 which is amendment No.-1 states as below:

(1) This Act may be called the Companies (Amendment) Act, 2019.

(2) The provisions of this Act, except sections 6, 7 and 8, clauses (i), (iii) and clause (iv) of section 14, sections 20 and 21, section 31, sections 33, 34 and 35, sections 37 and 38 shall be deemed to have come into force on the 2nd day of November 2018.

(3) The provisions of sections 6, 7 and 8, clauses (i), (iii) and clause (iv) of section 14, sections 20 and 21, section 31, sections 33, 34 and 35, sections 37 and 38 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for these provisions and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.


Initially, Central Government notified 43 sections of the Companies (Amendment) Act, 2019, out of which 31 sections were effective from 2nd November, 2018. Other remaining sections 6, 7 and 8, clauses (i), (iii) and clause (iv) of section 14, sections 20 and section 31, sections 33, 34 and 35, sections 37 and section 38 of this Act were notified by the Ministry by way of separate commencement Notification (S.O. 2947(E)) dated 14th August, 2019 and came into force from 15th day of August, 2019. Now only section 21 of said amendment act which is about section 135 (Corporate Social Responsibility) of principal act is pending for notify and yet not enforce.


http://www.mca.gov.in/Ministry/pdf/CommencemntNotification_14082019.pdf


Download Companies Amendment Act 2013:

https://www.mca.gov.in/Ministry/pdf/AMENDMENTACT_01082019.pdf


Note: The detail discussion on each amendment by the Companies (Amendment) Act, 2019 will be discussed on next blog.

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