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MAY 17, 2017

Company Law & Insolvency and Bankruptcy Code Updates

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Commencement of the provisions of clause (a) to clause (d) of section 2 of the Insolvency Code relating to voluntary liquidation or bankruptcy

MCA vide Notification No. S.O. 1570(E) dated May 15, 2017, has enforced the provisions of clauses (a) to (d) of section 2 relating to voluntary liquidation or bankruptcy of the Insolvency and Bankruptcy Code, 2016, w.e.f. 01.04.2017.

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Clarification regarding applicability of Section 16(1)(a) of the Companies Act, 2013 with reference to cases under corresponding provisions of Companies Act, 1956

A representation was received from Regional Director, Mumbai seeking clarification as to whether Regional Directors can entertain, fresh applications u/s 16 of the Companies Act, 2013 in respect of applications which were earlier rejected by them under Companies Act, 1956 on the ground of being time-barred as the prescribed period of twelve months had been completed (under Section 22(1)(ii)(b) of the Companies Act, 1956). It was expressed that Section 16 of the Companies Act, 2013 does not specify any time limitation.

After examining the matter, MCA vide General Circular No 4/2017 dated 16.05.2017 has clarified that applications that were rejected by Regional Directors under Section 22(1)(ii)(b) of the Companies Act, 1956, on the ground that such applications were made after the requisite period of twelve months specified therein, can’t be filed afresh under Section 16(1)(a) of the Companies Act, 2013, as the extinguished limitation cannot be considered to be revived even if no limitation period has been prescribed/ laid down in the said section.

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Withdraw the Circular No. 03/2017 dated 27.04.2017 regarding clarification on transfer of shares to IEPF Authority

MCA has withdrawn its General Circular No. 03/2017 dated 27.04.2017 regarding “Transfer of shares to IEPF Authority”. Accordingly, the circular issued by NSDL dated 28.04.2017  outlining the method of transferring shares to IEPF demat account also stands abated as of now.

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