Bangalore ROC Penalty order for violation of Section 170 of the Companies Act 2013 in the matter of Landomus Realty Pvt. Ltd.

Company Law Adjudication & Appeal Updates -24 June 2022

Bangalore ROC Penalty order for violation of Section 170 of the Companies Act 2013 in the matter of Landomus Realty Pvt. Ltd.

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One of the Directors has signed the documents as a capacity of Chairman & CEO during the course of inquiry u/s 206 of the Companies Act 2013. But as per records no resolution has been passed appointing him CEO by the Company or the board.

Insolvency and Bankruptcy Board of India amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (MCA updates 15th June 2022)

The Insolvency and Bankruptcy Board of India (IBBI/Board) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2016 (CIRP Regulations) on 14th June, 2022.

The amendment provides the operational creditors to furnish extracts of Form GSTR-1, Form GSTR-3B and e-way bills, wherever applicable along with the application filed under section 9 of the Insolvency and bankruptcy Code, 2016. These additional set of documents, can  be used as evidence of transaction with the corporate debtor, debt and default easing the process of admission. These documents will also to be submitted as part of the claims submitted to the resolution professional to help collation of claims. Further, creditors filing applications under section 7 or 9 of the Code are required to furnish details of their PAN and Email ID to ensure smooth correspondence.

In order to improve information availability, the amendment places a duty on corporate debtor, its promoters or any other person associated with the management of the corporate debtor to provide the information in such format and time as sought by the resolution professional.

The amendment places a duty on the creditors to share information regarding the assets and liabilities of the corporate debtor, the financial statements and other relevant financial information from their records and available reports to help the resolution professional in preparation of the information memorandum and relevant extracts from the transaction or forensic audit reports to aid the resolution professional in preparation of the avoidance application.

The Amendment also addresses the issue of treatment of avoidance applications filed with the Adjudicating Authority after closure of the corporate insolvency resolution process (CIRP). It provides that the resolution plan shall provide for manner in which such applications will be pursued after the approval of the resolution plan and the manner in which the proceeds, if any, from such proceedings shall be distributed.

The amendment includes a definition of significant difference in valuations during CIRP and enables the committee of creditors to make a request to the resolution professional regarding the appointment of a third valuer.

The amended regulations are effective from today. These are available at www.ibbi.gov.in.

MCA Press release dated 15th June 2022

IBBI amends Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 (MCA updates 15 June 2022)

With a view to put in place, a streamlined and swift complaint handling procedure, the Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) (Amendment) Regulations, 2022 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022 to amend the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017.

The Insolvency and Bankruptcy Code, 2016 (Code) read with Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 provide mechanism for redressal of complaints and grievances filed against insolvency professionals, insolvency professional agencies and information utilities. Further the Code read with Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 provide mechanism for carrying out inspections and investigations on insolvency professional agencies, insolvency professionals and information utilities and passing orders by Disciplinary Committee.

The mechanism of complaint/ grievance redressal and subsequent enforcement action has been amended to have expeditious redressal and also to avoid placing undue burden on the service providers. To curtail such delays and to ensure expeditious and result oriented enforcement mechanism, the Amendment Regulations provides for following:

  • Revisions in various timelines related to enforcement process provided in the (Grievance and Complaint Handling Procedure) Regulations, 2017 and (Inspection and Investigation) Regulations, 2017 for addressing the issue of delay in present mechanism.
  • Effective participation of IPAs in regulating the IPs through examination of grievances received against IPs.
  • Intimation to Committee of Creditor (CoC)/ Adjudicating Authority (AA) about the outcome of Disciplinary Committee (DC) order.

The Amendment Regulations are effective from 14th June, 2022. These are available at www.ibbi.gov.in.

MCA Press Release dated 15th June 2022

Compliance requirements applicable on Small Companies under the Companies Act, 2013

Small Companies defined as a company with a paid-up capital of INR 2 crore or less, and turnover of INR 20 crore or less. Small companies enjoy various advantages over other companies in compliance matters. Let’s see what are the compliance requirements applicable on Small companies:

1. Disclosures by a Director of his Interest:

Section & Rules:  Section 184(1)& Rule 9(1)of Companies(Meetings ofBoard and itsPowers) Rules,2014.

Applicable Form:  Form MBP-1

Particulars:  Every director shall at the first meeting of the Board in which he participates as a director and

thereafter at the first meeting in every financial year or whenever there is any change in the disclosures already made, then at the first Board meeting held after such change, disclose his concern or interest in other entities which shall include the shareholding.

Such notices shall be kept at the registered office and be preserved for a period of eight years from the end of the financial year to which it relates in the custody of the company secretary of the company or any other person authorized by the Board. 

2.  Disqualification of Directors : 

Section & Rules:  Section 164(2) & 143(3)(g) & Rule 14(1) of Companies (Appointment and Qualification of Directors)Rules, 2014

Applicable Form:  Form DIR-8

Particulars:  

No person who is or has been a director of a company which—

(a) has not filed financial statements/ annual returns for any continuous period of 3 financial years; or

(b) has failed to repay the deposits accepted by it or  pay interest thereon or to redeem any debentures on the due date or pay interest due thereon or pay any dividend declared and such failure to pay or redeem continues for one year or more, shall be eligible to be re-appointed as a director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so.

Every director shall inform to the company concerned about his disqualification under subsection (2) of section 164, if any, before he is appointed or re- appointed.  

3.  Annual Return:   

Section & Rules:  Section 92(4) & (1) & Rule 11 (1) of Companies (Management And administration) Rules, 2014

Applicable Form:  E-form MGT- 7A

Particulars:  

Every Company shall file its Annual Return within 60 days of holding of AGM or where no AGM is held in any year within 60 days from the date on which the AGM should have been held together with the statement specifying the reasons for not holding the AGM with such fees as may be prescribed. The Central Government may prescribe abridged form of annual return for small company.

Annual Return of every Small Company shall be signed by the company secretary, or where there is no

company secretary, by the director of the company.

Small Company shall file annual return from the financial year 2020-2021 onwards in Form No.MGT-7A.

4.  Placing of the annual return on website 

Section & Rules:  Section 92(3) & 134(3)(a) & Rule 12(1) of the Companies (Management and Administration) Rules, 2014.

Applicable Form:  E-form MGT- 7A

Particulars:  

Every company is required to place a copy of annual return on its website and the web link where annual return has been placed will be required to be mentioned in the Board’s Report.

Section 92 (3) shall not apply in case of Specified IFSC Private Company – vide Notification No. G.S.R. 9 (E) Dated 4th January, 2017.

5. Financial Statement  

Section & Rules:  Section 137 & Rule 12(1) of Companies (Accounts) Rules, 2014

Applicable Form:  E-form AOC- 4 & E-form AOC- 4 CFS

Particulars:    

Company is required to file its financial statements, including consolidated financial statement along with all the documents required to be or attached to such financial statements, duly adopted at the AGM of the company with the Registrar within 30 days of the date of AGM or in case financial statements are adopted in the adjourned AGM, within 30 days of the date of adjourned AGM.

If annual general meeting is not held for any year, the financial statements along with the documents required to be attached under sub-section (1) of section 137 duly signed along with the statement of facts and reasons for not holding the annual general meeting shall be with the Registrar within 30 days of the last date before which the annual general meeting should have been held.

6. Board’s Report 

Section & Rules:  Section 134 & Rule 8 of the Companies (Accounts) Rules, 2014

Applicable Form:  NA

Particulars:    

Board’s Report shall be prepared mentioning all the information required to be included in it for Small Company under Section 134. It should be signed by the “Chairperson” authorized by the Board, where he is not so authorized by at least two Directors one of whom shall be a managing director or by the director where there is one director.

7. Circulation of Financial Statement & other

Section & Rules:  Section 136

Applicable Form:  NA

Particulars:    

Company shall send to all the members of the Company, all trustees for the debenture holders and to all persons being the persons so entitled, a copy of approved Financial Statements (including consolidated Financial Statements, if any auditor’s report and every other document required by law to be annexed/

attached to the financial statements) at least 21 clear days before the Annual General Meeting.

(Shorter Notice pursuant to section 101(1).

In case of private company which is a small company, Section 101 shall apply, unless otherwise specified in respective sections or the articles of the company provide otherwise.

8.   Notice of AGM

Section & Rules : Section 101 & Rule 18 of the Companies (Management and Administration) Rules, 2014 &

SS- 2

Particulars:     Every Notice of Annual General Meeting shall be prepared as perSection 101 of Companies Act, 2013 and Secretarial Standard – 2.

9.    Sending of Notice of AGM

Section & Rules :  Section 101 & SS – 2

Particulars:     Notice of Annual General Meeting shall be sent to all the Directors, Members, Auditors, legal representative of any deceased member and the assignee of an insolvent member.

10.  Board Meetings

Section & Rules :  Section 173 (5) & SS-1

Particulars:     Every Small Company shall hold at least one (1) meeting of the Board of Directors in each half of a calendar year and the gap between the two meetings shall not be less than 90 days.

11. Notice of Board Meeting

Section & Rules: Section 173 (3) & SS-1

Particulars: A meeting of the Board shall be called by giving not less than 7 days’ notice in writing to every director at his address registered with the company and such notice shall be sent by hand delivery or by post or by electronic means.

However, meeting of the Board may be called at shorter notice to transact urgent business.

12.  Appointment of Auditor

Section & Rules : Section 139(1) & Rule 4(2) of the Companies (Audit and Auditors) Rules, 2014.

Form : E-form ADT-1

Particulars: Auditor shall be appointed for 5 years in the AGM. The company shall inform the auditor concerned of his or its appointment, and also file a notice of such appointment with the Registrar within

15 days of the meeting in

13. Register of Members

Section & Rules : Section 88 & Rule 3 of the Companies (Management and Administration) Rules, 2014.

Form MGT.1 &

Form MGT.2

Company shall keep & maintain the following mandatory Registers:

• Register of Members,

• Register of debenture-holders,

• Register of any other security holders.

Benefits/ Privileges for small companies

1.  Lesser Penalties

 Lesser penalties for Small Companies under Section 446B of the Companies Act, 2013: – If a small company fails to comply with the provisions of section 92(5), section 117(2) or section 137(3), such company and officer in default of such company shall be liable to a penalty which shall not be more than one half of the penalty specified in such sections.  

2. Lesser Fees

Fees for filings and other formalities u/s. 403 of the Companies Act, 2013 is also comparatively lower for the small companies.

3 . No Certification by the Professional on E Forms

The companies are required to file the various E Forms pertaining to filing of Balance Sheets, Annual Returns, and various other event based e forms. If we look from the corporate point of view, the companies shall not be required to get the E Forms being certified from the Practicing Professionals.

 4. Holding of Board Meetings:

A Small Company can hold only 2 Board meetings in a calendar year i.e. one board meeting in each half of the calendar year. However the gap between the two board meetings should not be less than 90 days. So in case of Small Companies, the Board is not required to conduct 4 meetings in a year as it is applicable in case of companies other than small and OPC companies

5. Signing of an Annual Return:

In case of Small Company, the Annual Return can be signed by Company Secretary alone or if there is no CS, by a single Director only.

6. Cash Flow Statements :

 A Small company does not require to maintain a Cash flow statement as a part of its Financial Statements. So while filing of Balance Sheet with Registrar of Companies, companies shall not be required to attach the CASH Flow Statements along with the Financial Statements

7. Abridged Director Report and Annual Return

For small companies, the format of director report is not vast rather an abridged Director Report shall also be sufficient. The format has already been prescribed by the Ministry for abridged Director Reports for Small Companies and One Persons Companies. Matters to be included in Board’s Report mention in Rule -8 of companies (Accounts) Rules, 2014 not apply for small company.

8. Fast Track Merger Process

The merger process between small companies is less cumbersome and less expensive and hence, on a fast track basis as compared to the other one

9. No Auditor Retire By Rotation

Every Private Limited company having a capital more than Rs. 20 crore is required to rotate its auditor after a term of 5 years. But being a small company, having capital less than 20 crore, shall never be required to rotate its auditor according to Section 139(2) of Companies Act 2013. Please Note that Section 139(2) of the Company Act 2013, which mandates the rotation of auditors every 5 years (individual auditors) and every 10 years (firm of auditors).

 10. Need not to have Internal Financial Control Report

A Small Company does not require to report in its Audit Report regarding Internal Financial controls and the operating effectiveness of the company.

Evolution of Revolution – Sustainability, Environment-Social-Governance (ESG), Corporate Social Responsibility (CSR) in a new paradigm shift (MCA updates 12 June 2022)

Thousands of industry leaders have witnessed a revolutionary evolution of ESG and CSR at the campus of Indian Institute of Corporate Affairs (IICA), IMT Maneasr. About 30 top companies exhibited their practices in the sphere of sustainability, Environment-Social-Governance (ESG), and Corporate Social Responsibility (CSR).

School of Business Environment (SoBE) in IICA has set the right directions for companies to be more responsible in their approach towards the society, economy and environment. IICA is a think tank under the Ministry of Corporate Affairs working towards strengthening the ESG-CSR ecosystem in the country among its other initiatives.
 

Shri Rao Inderjit Singh, Union Minister of State for Corporate Affairs was the Chief Guest in the event and participated virtually. He said that Ministry’s contribution in promoting Good Corporate Governance has further facilitated ease of doing business in the country. Government lays strong emphasis on the reinforcement of ‘minimal government & maximum governance’, public trust and ease of doing business. The Government has repealed over 25000 compliances and nearly 1500 union laws. The Amrit Kaal will focus on the next phase of Ease of Doing Business (EoDB 2.0) and Ease of Living and the government following the goal of ‘trust-based governance’ to improve the productive efficiency of capital and human resources. He emphasised that Sustainable Development is now recognized as Fundamental Right of the people. The Supreme Court of India has held that sustainable development is to be treated as an integral part of life under article 21 of the Constitution of India. Hence, complying with the principle of sustainable development is a constitutional mandate. He said that as an Individual everyone has a  great responsibility on their Shoulders. Until individual mindset don’t change Massive revolution are difficult in achieving the SDG Goals.

Shri Rajesh Verma, Secretary, Ministry of Corporate Affairs said that Ministry of Corporate Affairs has made remarkable contributions by introducing Corporate Social Responsibility (CSR) mandate under the Companies Act, and the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business and also an updated version of National Guidelines on Responsible Business Conduct (NGRBC). The Securities and Exchange Board of India (SEBI) has mandated Business Responsibility and Sustainability (BRSR) reporting on top 1000 listed companies by market capitalization. The foundation of BRSR is inspired by the Ministry of Corporate Affairs’ Report on Business Responsibility Reporting (BRR) and National Guidelines on Responsible Business Conduct. 

Secretary, Corporate Affairs released a book titled “Benchmarking ESG & CSR” a compilation of the case studies on identified practices on sustainable development projects by companies through their ESG and CSR initiatives. The book was edited by Dr. Garima Dadhich and Dr. Ravi Raj Atrey. An essay competition was also organized by IICA, three winners received awards for their best essays by the Secretary, Corporate Affairs. In a Panel discussion on Corporate Governance, Shri Inderdeep Singh Dhariwal, Joint Secretary MCA Chairing the Technical Session 1 spoke about the youth’s contribution towards the revolutionary change of the Corporate Governance. Sh Manoj Pandey Joint Secretary emphasised on Women’ Financial Literacy during the 2nd Technical Session, while Chairing.

Shri Praveen Kumar, Director General and CEO, IICA in his welcome address said that , It is well-known that economy is the backbone of any nation and one of the key drivers of this backbone is the corporate sector. They have played a significant role in the remarkable Indian Growth story and they would have to continue their exceptional contribution to ensure that the economy keeps attaining greater heights. The Ministry of Corporate Affairs (MCA) provides the enabling framework for corporates in order to make them effective contributors to national development. The IICA is the only institution that has a mandate to strengthen corporate affairs in the country.  30 Exhibitors working on ESG-SDG-CSR exhibited their best practices being carried out by them. The Exhibition was inaugurated by Secretary MCA Sh Rajesh Verma. Around 30 Companies participated and exhibited their Best Practices.

Ms Nandita Mishra and other panellists also expressed their views during the technical Sessions.

During the Inaugural programme  winners of the Essay competition were announced .  Topic of the Essay Competition was “Corporate Governance : Evolving Vision For  New India” . The contest was open for the students and young professionals upto the age of 30 years in Bilingual language i.e. Hindi or in English. Tremendous response for this competition was received in terms of entries. 3rd Prize Mr Sartaj Singh 2nd Prize  Ms Nandini Agarwal and the !st prize to Mr Samyak Sanghvi from Ahmedabad were felicitated with the cash prize and a certificate.

In the Technical session on Impactful CSR towards strengthening ESG, Ms Anita Shah Akella, Joint Secretary, Ministry of Corporate Affairs Chairing the technical session stated that Corporate have been playing a key role by making contributions for the betterment of society through their CSR initiatives. Presently they are witnessing a transitional approach from CSR to ESG in their functioning. A women centric approach, a gender sensitive approach, is required in any initiative, particularly when we talk about the CSR and ESG aspects. Particularly the governance aspects of ESG should focus on Women’s Rights in an organizational setting. Other dignified speakers in the panel were Ms Naina Lal Kidwai, Ms Namita Vikas, Dr Inderjeet Singh, Mr. Shrabjeet Sahota, Dr.Suranjali Tondon, Ms Neetu Ahuja and Dr. Garima Dadhich. The panel concluded that to achieve a paradigm shift in ESG and CSR may be destined through such initiatives of the IICA which motivate those doing good work and inspires others to follow. IICA’s upcoming Certified ESG Professional Course will also be a landmark in this sector in country. I

In another technical session emphases was made on Financial Inclusion and Literacy of Women. Dr. Naveen Sirohi, emphasised on importance of women empowerment and financial literacy. The speakers were Shri Manoj Pandey, Joint Secretary, MCA, Sushmita Phukon, Seema Singh, and Namita Vikas. 

Mr Arjan De Wagt Deputy Representative Unicef India, Smt Nandita Mishra – Economic Adviser MCA, Mr Agrim Kaushal Adviser DPE and Shri Vishram Kumar Meena, Additional Dy Commissioner Gurugram also graced the programme.

The event ‘Promoting Impactful CSR and Good Governance’ was organised in collaboration with NITI Aayog, Department of Public Enterprises and Unicef India in light of requirements under Amrit Kaal. The programme was facilitated by Dr Garima Dadhich, Head of School of Business Environment in support with Dr Lata Suresh Head KRC, Dr Ravi Raj Atrey and Ms Sudha Rajagopalan under the able guidance of Shri Praveen Kumar DG & CEO, IICA.

Our dedicated contributions today will witness a great revolutionary change tomorrow and will have far reaching impacts day after, said Dr. Garima Dadhich and Dr. Ravi Raj Atrey Faculty of School of Business Environment in IICA during an interview describing about the book which was released during  the Inaugural session.

Dr Lata Suresh was the master of ceremony during the event who is also a media coordinator.

Press Release dated 12 June 2022

Amendment in Companies (Appointment and Qualification of Directors) Rules, 2014 (MCA Notification dated 10 June 2022)

In exercise of the powers conferred by section 149 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Appointment and Qualification of Directors) Rules, 2014, namely: –

1. Short title and commencement.- (1) These rules may be called the Companies (Appointment and Qualification of Directors) Second Amendment, Rules, 2022. (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Appointment and Qualification of Directors) Rules, 2014, in rule 6, after sub-rule (4), the following sub-rule shall be inserted, namely: –

“(5) Any individual whose name has been removed from the databank under sub-rule (4), may apply for restoration of his name on payment of fees of one thousand rupees and the institute shall allow such restoration subject to the following conditions, namely :-

(i) his name shall be shown in a separate restored category for a period of one year from the date of restoration within which, he shall be required to pass the online proficiency self-assessment test and thereafter his name shall be included in the databank, only, if he passes the said online proficiency self-assessment test and in such case, the fees paid by him at the time of initial registration shall continue to be valid for the period for which the same was initially paid; and

(ii) in case he fails to pass the online proficiency self-assessment test within one year from the date of restoration, his name shall be removed from the data bank and he shall be required to apply afresh under sub-rule (1) for inclusion of his name in the databank.”.

Amendment in Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 ( MCA Notification dated 09th June 2022)

In exercise of the powers conferred by sub-sections (1), (2) and (4) of section 248 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 , namely:-

1. Short title and commencement.- (1) These rules may be called the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2022. (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, –

I. in rule 4, after sub-rule (3), the following sub-rule shall be inserted, namely:─

“(4) (a) Where the Registrar, on examining the application made in Form STK-2, finds that it is necessary to call for further information or finds such application or any document annexed therewith is defective or incomplete in any respect, he shall inform to the applicant to remove the defects and re-submit the complete Form within fifteen days from the date of such information, failing which the Registrar shall treat the Form as invalid in the electronic record, and shall inform the applicant, accordingly.

(b) After the re-submission of the Form or document, if the Registrar finds that the Form or document is defective or incomplete in any respect, he shall give further time of fifteen days to remove such defects or complete the Form, failing which the Registrar shall treat the Form as invalid in the electronic record and shall inform the applicant, accordingly.

(c) Any re-submission of the application in Form STK-2 made prior to the commencement of the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2022 shall not be counted for the purposes of reckoning the maximum number of re-submissions of such Form.”.

II. for Form No. STK 1, Form No. STK – 5 and Form No. STK-5A, the following Forms shall respectively, be substituted, namely:-

National CSR Exchange Portal

National CSR Exchange Portal

Launch of National CSR Exchange Portal-  a digital initiative on CSR which will enable stakeholders to list, search, interact, engage and manage their CSR projects on a voluntary basis. The portal is a testimony to the idea of “Technology empowers the less empowered”.

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman to launch the Iconic Day celebrations of Ministry of Corporate Affairs at Vigyan Bhawan on 7th June 2022

Launching of National CSR Exchange Portal

MCA  released commemorative Postal Stamp on Investor Awareness

A short film on the evolution of Corporate Governance in India is  released

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman will flag off the Iconic Day celebrations of Ministry of Corporate Affairs (MCA) during Iconic Week of Azadi ka Amrit Mahotsav (AKAM) as a part of the mega celebration of Ministry of Finance and Ministry of Corporate Affairs in New Delhi, tomorrow. The Iconic Day will be celebrated at the Plenary Hall, Vigyan Bhawan.

Union Minister for Finance and Corporate Affairs will grace the occasion the as the Chief Guest and Rao Inderjit Singh, Minister of State for Ministry of Corporate Affairs & MoS (I/C) Ministry of Statistics and Programme Implementation, Ministry of Planning would be the Guest of Honour.

The event will be an amalgam of various industry experts, consumer & investor voices, regulatory experts, professionals, corporate citizens, investors and other stakeholders. During the inaugural session the chief guest will unveil eight major releases, viz:

Releases, Launch & Prize Distribution

  1. Release of Short Film “Journey of Corporate Governance in India: A Panorama”- will majorly include evolution of Corporate Governance in India
  2. Release of Film on Investors Oath –the film on oath will be released and oath will administered in 75 unique locations throughout India, wherein present and prospective investors from all over the country will come together in physical and virtual mode to take oath with under the aegis of IEPFA to become informed and empowered investor.
  3. Release of Commemorative Postal Stamp on Investor Awareness – A unique postal stamp carrying the message of inclusive financial literacy & investor awareness with the mandate of Investor Education & Protection Fund Authority.
  4. Launch of Special Window Facility (for senior citizens of 75 years age and above)- the film shows the unique initiative of IEPFA for Senior Citizens of 75 years age and above.
  5. Launch of National CSR Exchange Portal-  a digital initiative on CSR which will enable stakeholders to list, search, interact, engage and manage their CSR projects on a voluntary basis. The portal is a testimony to the idea of “Technology empowers the less empowered”.
  6. Release of Publication on IBC –Insolvency Now & Beyond-for the benefit of stakeholders of IBC ecosystem in India. The publication is a compilation covering UK experiences and best practices on the emerging areas/ issues under the Insolvency ecosystem in India.
  7. Presentation of awards to winners of National Online Quiz on IBC, 2016-IBBI-  in collaboration with MyGov.in and BSE Investors’ Protection Fund, IBBI has conducted the ‘3rd National Online Quiz on Insolvency and Bankruptcy Code, 2016’, to promote awareness and understanding of the Code among various stakeholders across the country. The Quiz received participation of more than 71,000 participants.
  8. Release of E-Book A Compendium on CSR Compendium – For the benefit of stakeholders and ease of accessing the information, the Ministry of Corporate Affairs compiled all the existing knowledge resources on CSR into a single source, and proposed to release as an e-book “Compendium on CSR”.

Shri Rajesh Verma, Secretary, Ministry  of Corporate Affairs (MCA), along with head of other subordinate and regulatory organisations under the MCA will also be present during the occasion. Various other technical sessions were organized by IEPF Authority, Competition Commission of India, Insolvency and Bankruptcy Board of India, Indian Institute of Corporate Affairs, Professional Institutes viz. ICAI, ICSI, ICoAI.

Different activities conducted by organisations under the Ministry throughout the period of Amrit Mahotsav will also be exhibited during the events.

The event shall include various technical session being organised by IEPF Authority, Competition Commission of India, Insolvency and Bankruptcy Board of India, Indian Institute of Corporate Affairs, Professional Institutes viz. ICAI, ICSI, ICoAI.

The event shall see participation of various industry experts, consumer & investor voices, regulatory experts, professionals, corporate citizens, investors and other stakeholders and would also be webcasted live through social media and Other Channels.

Being the facilitator for Corporate Governance in India, the Ministry of Corporate Affairs has over the past years organized more than 360 programmes on the different themes under this Mahotsav including Ideas @75, Resolve @75, Actions @ 75, Achievements @ 75 and commemorating the freedom struggle. These programmes have been organized involving all key stakeholders at various parts of the country in spirit of Jan Bhagidari.

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MCA Press Release 06th June 2022

MCA : IBBI to hold Conference on “Entrepreneurship Liberty: Freedom of Entry, Competition and Exit” and IP Conclave under Azadi ka Amrit Mahotsav on 10th June 2022

Insolvency and Bankruptcy Board of India (IBBI) is organising a one-day iconic event on 10th June 2022 at the Habitat Centre, New Delhi, to mark the glorious conclusion of the on-going celebrations across 75 locations across the country, to trace the journey of reforms in the three stages of a business.

Markets need freedom, broadly, at three stages of a business – to start a business (free entry), to continue the business (free competition) and to discontinue the business (free exit). The Insolvency and Bankruptcy Code, 2016 offers a market directed, time bound mechanism for resolution of insolvency, wherever possible, or exit, wherever required, and thereby ensures the ultimate freedom, the freedom to exit, facilitating ease of doing business.

Hon’ble Justice Ashok Bhushan Chairperson, National Company Law Appellate Tribunal will grace the occasion as Chief Guest. Shri Rajesh Verma, Secretary, Ministry of Corporate Affairs; Shri Ashok Kumar Gupta, Chairperson, Competition Commission of India; and Shri Praveen Kumar, DG & CEO, Indian Institute of Corporate Affairs will be the Guests of Honourat the event. The Conference shall be followed by a half day Insolvency Professional Conclave.

Further Shri Dharmender Singh Hon’ble Member (Judicial), National Company Law Tribunal; Shri Avinash K. Srivastava Hon’ble Member (Technical), National Company Law Tribunal; Shri Anant Barua Whole Time Member, Securities and Exchange Board of India Shri Satish Kumar Gupta Insolvency Professional; Shri Debajyoti Ray Chaudhuri MD & CEO, National E-Governance Services Ltd.; Shri Kapil Mantri Head M&A, Jindal Steel and Power Ltd.; Shri Amarjit Singh Chandhiok Senior Advocate; President, INSOL India ; Shri Shardul Shroff Executive Chairman, Shardul Amarchand Mangaldas & Co. and CS Alka Kapoor, COO ICSI IIP will also address the participants at the event.

A publication titled, “Anusandhaan: Exploring New Perspectives on Insolvency” containing 26 research papers that emerged out of an international research conference organized by IBBI and IIM Ahmedabad recently is also scheduled to be released during the inaugural session of the Conference.

Large number of stakeholders of the IBC ecosystem, from across the country, including insolvency professionals, registered valuers, economists, financial creditors, service providers, researchers, students, professionals, regulators, academia and government officers are expected to join the Conference both in physical well as online mode.

Azadi Ka Amrit Mahotsav (AKAM) is an initiative of the Government of India to celebrate and commemorate 75 years of progressive India and the glorious history of its people, culture and achievements. Since the beginning of AKAM celebrations which was started on 12th March, 2021 by the Prime Minister, Shri Narendra Modi. IBBI has organized several activities and events as part of the Mahotsav

For more detailed programme, CLICK HERE.

Ministry of Corporate Affairs Press Release 09th June 2022

SC : Adjudicating authority (NCLT) or the appellate authority (NCLAT) cannot sit in appeal on commercial wisdom of Committee of Creditors

Case Reference: Vallal Rck Vs Siva Industries And Holdings Limited And Others (Supreme Court) dated 03/06/2022

SC held that when 90% or more of the creditors decide that it will be in the interest of all the stake-holders to permit Settlement Plan filed by promoter of the Corporate Debtor and withdraw Corporate Insolvency Resolution Process as per Section 12A of the IBC, 2016, the adjudicating authority (NCLT) or the appellate authority (NCLAT) cannot sit in appeal over such commercial wisdom of Committee of Creditors.