Corporate Professionals Blog

I. MCA notifies 183 new sections of Companies Act 2013 in Phase IV The Ministry of Corporate Affairs has notified 183 new sections of the Companies Act 2013 and some sub- sections of 13 sections which were already notified by notification dated 12th September 2013 and remaining schedule, in the fourth phase today, by way of notification dated 26th March 2014. These sections have been notified to come into effect from 1st April 2014. With the notification of these sections, now a total of 283 sections of the new Act stand notified.

All Listed Companies are governed by the provisions of Listing Agreement under supervisory authority of SEBI. SEBI has special power under section 11 read with section 11A of SEBI Act, 1992 under which SEBI may make the provisions for protection of interest of  investors  and to promote the development of market.

One of the basic fundamental for contemplating the idea to roll-out any incentive plan is to ensure the attractiveness of the Plan from the perspective of the Employees. Corporate Houses have substantial flexibility to frame the plans catering to their needs as well as to the needs of the Employees. Generally, the Companies opt for one or more of the following modes with some permutation & combination to align it with the needs & objectives of its business:

Retrenchment of workers in the private sector is principally governed by the Industrial Disputes Act, 1947 (the “Act”) and the employment contracts. According to Section 2 (j) of the Act, it is applicable to any industry meaning any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen. Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com The Act defines “Workman” as any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment are express or implied. However, important exceptions are:  Workman employed mainly in a managerial or administrative capacity; or  Workman, being employed in a supervisory capacity, draws wages exceeding Rupees ten thousand (Rs. 10,000) per month or exercises, e...

The concept of independent directors was initially introduced with a view to increase transparency, fairness and independence in decision making and, to protect stake holders’ interest. So far only listed public companies were required to appoint independent directors under the Listing Agreement. Now, the Companies Act, 2013 extends such requirement to cover big public companies also. The move may infuse more objectivity in decision making of companies, but it is set to create some turmoil as well. Finding a person who has all the prescribed qualifications will be a challenge. Recently SEBI has also brought about reforms to bring the requirements of Clause 49 of the Listing Agreement in line with the Companies Act, 2013, which are scheduled to become effective on October 1, 2014.