The recently enacted Companies Act, 2013 ('the Act') is a landmark legislation with far-reaching consequences on all companies incorporated in India. A part of the Act had already become effective with the notification of 98 sections in September 2013. Further on 26 March 2014, the MCA has notified most of the remaining sections. These sections have been notified to come into effect from 1 April 2014. The MCA has also published the several chapters of the related rules, and the remaining rules in respect of the notified sections are expected to be released by 31 March 2014. This is a landmark legislation that will have a wide ranging impact on corporate India.
Corporate India continues to evolve at a fast pace leading to the emergence of a diverse set of stakeholders. The growth has led to a surge in consequences such as risk and default that seem to be visibly impacting the virtues of governance, which is precisely the area on which the Act promises to substantively raise the bar. The Act is also quite outward looking and in several areas attempts to harmonize with international requirements.
The Act in a comprehensive form purports to deal with various aspects of corporate India and Indian companies will have to closely examine these developments to develop a clear strategy at ensuring compliance per the new requirements.
KPMG in India had organized a Webinar on the Companies Act 2013 for its clients on Tuesday, 1 April 2014 between 3 – 5 PM. The objective was to provide an opportunity to get a better understanding of the Act, the implications and the likely steps that companies will be required to take to address the new requirements and standards. You may click here to access the webinar and click here for the flyer.