Govt releases draft for new Companies Act

The government on Monday released detailed draft norms for various clauses of the new law that replaces a nearly six-decade-old legislation and overhauls the way corporates function and are regulated in the country.

The government on Monday released detailed draft norms for various clauses of the new law that replaces a nearly six-decade-old legislation and overhauls the way corporates function and are regulated in the country.

The first set of draft rules, covering 16 out of a total 29 chapters of the Act, covers rules governing new norms for the board of directors, auditors, registration and incorporation of companies, revival of sick companies, financial accounts of corporates, foreign-incorporated companies and National Company Law Tribunal and Appellate Tribunal.

Rules have also been issued for chapters on declaration and payment of dividends, prevention of oppression and mismanagement and nidhis.