I fully agree with your observations. The CA 2013 will retard corporate working and progress of development. The law is not to facilitate corporate governance but to create hurdles and punish by fine and imprisonment to Company officials Directors and other KMP.
For an example, the change over the CA1956 in deposit by members is totally uncalled far and disastrous for private companies. Now present private companies are seriously considering to convert their business into partnership, proprietorship or HUF. Now there will not be more private companies. The law makers are far from ground practical realities. In small companies members are investors and they also select directors among members, there is rarely outside directors. Thus members in private companies are real promoters, investors and actual support of working of companies. CA2013 provides that deposit from directors (excluding members) shall not be considered as deposits. Further there are certain formalities to be completed including filing of papers with ROC. In CA1956 deposits from members were not regulated and members used to support company as and when needed additional finance whether temporarily or permanently. More than seventy percent small scale industries is carried on by private companies in India. In Ajmer there is hardly any public limited company but all of them are private companies. They are searching a via media to approach Government of India for suitable amendment in Deposit Rules providing that “deposit in private company by members’ does not include in deposit under the Deposit Rules under CA2013.
The CA 2013 should have been of global level enable to work in internationally.
I shall appreciate your response.
Regards,
CS & CMA Sitaram Agarwal, 109A, Adarsh Nagar, Ajmer 305002. Rajasthan
This is a good lesson for our MCA Minister, Now everyone should stand together and in fact our professional bodies like ICAI, ICSI, and ICWAI should make a fresh representations to the new Government. As the new government is of the view and their basic slogan is " ACHE DIN AANE WALE HAIN". So lets see when these good days comes to us.
CA Rahul Bansal
1) A political party who has made company law as "CRIMINAL LAW"(lots of prosecution provision, disproportionate penalty provisions) IS OUT OF POWER. MCA Minister has lo
s
t by 1.5 Lakhs votes.
2
) People now think better not to form a Company. 3
) New Company law is against development of corporate form of business in India.
Will New party make some amendments in Company Law so that favorable business environment can be restored? 4) Professional & business organisation such as ICAI, ICSI, ICWAI, Different chamber of commerce etc should represent to New Govt & take advantage of change in political scenario.
Warm Regards
"Team" CA.Nitesh More | FCA, |
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