MCA asks NCLT for exemptions to fix IL&FS problem faster
PrintListen to this Article
However, the NCLT judge observed that the Companies Act does not permit an exemption from procedure. The tribunal is yet to pass its final order in the case.
MCA has requested for three specific exemptions. The first one involved the appointment of Vineet Nayyar as Managing Director (MD) of IL&FS. Since Nayyar is 80 years old, his appointment would have to be done through the approval of a special resolution, which is necessary for the appointment of anyone above 75 years of age as MD.
The MCA’s counsel Manmohan Juneja argued that the completion of "all procedures will take lot of time, which will derail the resolution plan”. Juneja also said that the MCA had put in a lot of effort to get an eminent personality on IL&FS’ board and that if any person were to step down now, all the effort will have been in vain.
To convene a general body meeting, which would be necessary for the appointment of an MD, the company would need to give 21 days’ notice to its shareholders, who will then have to approve it.
The second exemption requested by the MCA was that nominee directors be appointed on the boards of all 348 of IL&FS’ subsidiaries. The judge said that if the erstwhile management of IL&FS had the power to supersede the boards of the company’s subsidiaries, the new management will also have that power.
The third exemption requested by the MCA was that IL&FS repay nearly Rs 4,000 crore of debt over the next 30 days. The ministry has also requested NCLT to exempt the new board from any regulatory action, or action from state authorities and agencies.#casansaar (Source - PTI, MoneyControl)
Category : MCA | Comments : 0 | Hits : 1035
In a relief to India Inc, the Ministry of Corporate Affairs (MCA) has raised the threshold limit for mergers and amalgamations (M&As) that need approval of the Competition Commission of India (CCI). In its latest notification, the MCA has enhanced the threshold value by 150 per cent on the basis of the wholesale price index (WPI) and exchange rate of the rupee. In another notification, the MCA has said that if the acquisition target has an asset value of less than Rs 450 crore or...
The Ministry of Corporate Affairs (MCA) will soon open its Central Processing Centre (CPC) for processing of forms related to all compliances for companies. This is aimed to free up capacity at the offices of Regional Directors and Registrar of Companies to deal with enforcement matters, official sources said. With CPC, the ministry will have launched the fourth centre to focus on specific areas of filing non-straight through process or non-STP forms.
The ministry of corporate affairs in India has granted 1,270 requests from professional associations - including company secretaries and chartered accountants - to deactivate or merge duplicated user IDs in the first month of permitting the move. The move was to allow such professionals to file corporate details via the latest MCA 21 portal, which allows only individual IDs per user. Earlier versions of the software had allowed multiple IDs, leading to filing difficulties.
The Ministry of Corporate Affairs has already struck off hundreds of thousands of shell companies that are often used to funnel black money, the report said quoting sources in the know The Ministry of Corporate Affairs (MCA) is planning to further intensify its crackdown against non-functional (shell) companies, the Economic Times (ET) reported. The MCA has already struck off hundreds of thousands of shell companies that are often used to funnel black money, the report said, quoting source...
MCA to Consult Practitioners on MCA-21 Glitches
With the critical Corporate Affairs Ministry portal, MCA-21, still ridden with glitches, hampering everything from registration of new firms to routine filings by existing firms, the Ministry has decided to hold parleys on the challenges faced by industry. “Stakeholders’ consultations” on the issues related to the MCA-21 Version-3 portal will be steered by the Ministry’s top official, Secretary Manoj Govil, with compliance practitioners in Chennai on June 20 and Hydera...
Comments