Corporate Affairs Ministry will seek EC nod before notifying new rules
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With the Model Code of Conduct for general polls in force, the Corporate Affairs Ministry will intimate the Election Commission before notifying rules for the remaining provisions of the new companies law.
The Ministry is in the process of finalising the rules for various provisions of Companies Act, 2013 that replaces the way corporates are governed in the country.
Rules for certain provisions, including that for Corporate Social Responsibility (CSR) spending, have already been notified by the Ministry.
As the Election Commission of India announced the schedule for the Lok Sabha elections yesterday, the Model Code of Conduct has come into force.
A senior Ministry official said the Commission would have to be intimated before notifying other sections and rules for the new Companies Act.
Many of the new law's provisions are expected to come into effect from April 1.
Among others, the Model Code of Conduct is to ensure that no cause is given for any complaint that the party in power at the Centre has used its official position for the purposes of its election campaign.
Continuing with the implementation of the new Companies Act, the Ministry last week notified rules for CSR spending. Under the legislation, certain class of companies have to shell out at least two per cent of their three-year annual average net profit towards social welfare activities.
The new companies law, providing for sweeping changes in the way corporates operate and are regulated in the country, replaces the Companies Act 1956.
The Companies Bill 2013 was approved by the Parliament in August last year. (Economic Times)
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