Corporate Affairs
14- CORPORATE AFFAIRS |
- THE Ministry of Corporate Affairs (MCA) is primarily concerned with the administration of the Companies Act 2013, the Companies Act 1956, the Limited Liability Partnership Act, 2008, and other allied Acts and rules and regulations framed there-under mainly for regulating the functioning of the corporate sector.
- The Ministry is also responsible for administering the Competition Act, 2002 to prevent practices having an adverse effect on competition, to promote and sustain competition in markets, to protect the
- interests of consumers through the commission set up under the Act.
- The Ministry also has the responsibility of carrying out the functions of the Central Government relating to the administration of the Partnership Act, 1931, the Companies (Donations to National Funds) Act, 1951 and Societies Registration Act, 1860.
Administrative Structure:
- The Ministry has a three-tier organizational structure with the headquarters at New Delhi, seven offices of Regional Directors (RDs), fifteen Registrars of Companies (RoCs), fourteen Official Liquidators (OLs), and nine RoC-cum-OLs in states and union territories.
- The jurisdictional Registrars of companies, continue to have jurisdiction over the companies incorporated by the Registrar, CRC under the Companies Act, 2013 for all other provisions of the Act and the Rules made thereunder, which may be relevant after incorporation.
- The Official Liquidators function under the overall administrative control of the Ministry and are attached to corresponding High Courts.
- They are mainly responsible for implementing court orders regarding the liquidation and the final dissolution of the companies.
Central Registration Centre:
- The project to transform the processing of company incorporation, e-forms was undertaken with one clear objective, i.e., applications for name reservation and incorporation of a company could be processed and completed within D+1 days (D=Date of Payment Confirmation) in line with global best practices.
Ease of Doing Business:
- The Ministry has prescribed a Simplified Proforma for Incorporating Companies (SPICe) along with e-MOA (Electronic-Memorandum of Association) and e-AoA (Electronic-Articles of Association) which eliminates the requirement of physically signing the Memorandum of Association (MoA) and Articles of Association (AoA) by the applicant and helps entrepreneurs to start a business in India, without many hassles
- According to the Doing Business Report (DBR) of the World Bank, India has jumped 14 positions against its rank of 77 in 2020 to 63 among 190 countries.
- The Companies Act, 2013 seeks to bring corporate governance and regulatory practices in India at par with global best practices.
- The corporate sector has been given more flexibility in regulating its own affairs, subject to full disclosure and accountability of its actions while minimizing Government interference.
- The Act provides more opportunities for new entrepreneurs and enables wide application of information technology in the conduct of affairs by corporates.
Ease of Doing Business |
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Key Features of the Companies Act, 2013 |
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Companies (Amendment) Act, 2015 |
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Insolvency and Bankruptcy Code, 2016 (IBC, 2016) |
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Insolvency and Bankruptcy Board |
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Special Courts |
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National Company Law and Appellate Tribunal:
- The constitution of National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) was done in 2016.
- These bodies have been constituted for faster resolution of corporate disputes and reducing the multiplicity of agencies thereby promoting ‘ease of doing business’ in the country.
- With the constitution of the National Company Law Tribunal (NCLT), the Company Law Board (CLB) stands dissolved and cases pending with CLB were transferred to NCLT.
- Central Government has also notified provision for transfer of proceedings relating to arbitration, compromise, arrangements, and reconstruction to the benches of NCLT.
- The applications pending before High Courts on winding up shall continue to be dealt by the respective High Courts and fresh applications are required to be filed before NCLT.
- NCLAT has its headquarters at New Delhi.
- The Competition Appellate Tribunal under the provisions of the Competition Act was dissolved in 2017 and merged with NCLAT.
- The appeal against the orders of the Competition Commission of India is now with NCLAT.
Companies in the Registry |
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Corporate Social Responsibility |
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Limited Liability Partnerships |
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MCA21— e-Governance Project |
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Cost Audit |
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Investor Education and Protection Fund |
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Indian Corporate Law Service |
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Serious Fraud Investigation Office |
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Indian Institute of Corporate Affairs:
- The Ministry set up the Indian Institute of Corporate Affairs (IICA), a society registered under the Societies Registration Act, 1860 to serve as a ‘Holistic ThinkTank’, and a ‘Capacity Building, Service Delivery Institution’ to help corporate growth.
- The Institute fulfills the training needs of the officers of the Indian Corporate Law Service (ICLS), and other officials working for the Ministry, corporates, PSUs, and banks through its network of various schools and centers.
- National Foundation for Corporate Social Responsibility is also anchored with IICA.
Competition Commission of India:
- The CCI was established in 2003 under the Competition Act, 2002, with the objective of eliminating practices having an adverse effect on competition, promoting and sustaining competition, protecting the interest of consumers and ensuring freedom of trade in India.
- The Competition Act, 2002 was amended twice (Amendment) Act, 2007, and the Government (Amendment) Act, 2009.
- The provisions of the Competition (Amendment), 2002 relating to anti-competitive agreements and abuse of dominant position were brought into force in 2009 and those relating to combinations from 2011.
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