Major Initiatives of Ministry of Corporate Affairs

Major Initiatives of Ministry of Corporate Affairs

Question: The Ministry of Corporate Affairs is focused on good governance. What are the major initiatives and achievements of this ministry in the past one year?

• Ease of doing business has improved through amendments to the Companies Act 2013

• 16 amendments to the Companies Act 2013 were approved by the parliament for facilitating business and addressing stakeholder concerns

• Newly integrated e-Form INC 29 was made available from May 2015 for companies. The form has eliminated multiple applications and forms saving time and fees payable

• 24 amendments in Rules under the Companies Act 2013, 8 removal of difficulty orders and many clarifications were also issued

• Other prescribed forms were merged or discontinued with existing forms and simplification of forms also occurred

• A committee was also set up to check out further modifications in the Companies Act 2013

• Broad based committee comprised reps of the Institute of Company Secretaries of India, Institute of CAs of India and industry chambers members to look into proposed changes in Companies Act 2013

• Notification of Indian Accounting Standards was another massive milestone

• Following an announcement in the 2014-2015 budget, accounting standards converged with international standards namely International Financial Reporting Standards framed in consultation with Institute of CAs of India and National Advisory Committee on Accounting Standards

• The 39 standards referred to as Indian Accounting Standards have been notified on February 16 as the Companies (Indian Accounting Standards) Rules 2015

• The NCLAT was also established in an expeditious way

• NCLT is currently being set up too.

Facts and Stats

• Ministry of Corporate Affairs concerns administration of Companies Act 2013, the Companies Act 1956, the Limited Liability Partnership Act 2008 and other allied acts, rules as well as regulations framed as per law

• Ministry also administers the Competition Act

• It supervises three bodies namely ICAI/Institute of Chartered Accountants of India, ICSI/Institute of Company Secretaries of India and ICAI or Institute of Cost Accountants of India

• These were set up by three different parliament acts

• MCA also administers Partnership Act 1932, the Companies (Donations to National Funds) Act, 1951 and Societies Registration Act, 1980.