Amendment in Companies Act likely in 3 phases: Sources

The Ministry of Corporate Affairs (MCA) is likely to amend or clarify the Companies Act 2013 in three phases, said sources. Sources  learns that the ministry is likely to invoke Section 470 to expedite the implementation of the Act, reports Malvika Jain. Since the notification of this Act April 1, 2014, there have been demands by corporates and company law experts to amend it . There are several provisions within the Act which also need clarification and now after the meeting, which took place between representatives of the companies and company law experts and MCA officials, the ministry has decided to identify the priority area, which needs to be addressed immediately. The rest will be divided into critical and general areas and then eventually the ministry will invoke Section 470, which exists in the Act itself to remove difficulties in its implementation. MCA is also likely to invoke Section 462 to exempt certain classes of companies from various provisions of the Companies Act. Presently, there are various provisions that the ministry is looking into this includes appointment of women directors, role of directors and the manner in which overall formation of companies take place.