VIGNESH KUMAR - Qualified Company Secretary

INTRODUCTION: The Ministry of Corporate Affairs (hereinafter “MCA”) vide notification dated 1 st day of February 2021 introduced the Companies (Incorporation) Second Amendment Rules, 2021 for amending the existing provisions with respect to a One Person Company (hereinafter “OPC” ) under the law for time being in force thereby making significant changes in two aspects with respect to such entities: ·          the formation ·      Conversion of such a structure of business into any other category of economic vehicle recognised under the Companies Act, 2013 (hereinafter “the Act” ). ONE PERSON COMPANY – UNDERSTANDING THE CHARACTER : The concept of OPC found its inception only under the Companies Act, 2013 which was based upon the recommendation of the then expert committee led by Dr.   Jarnshed J. Irani vide their report dated 31st May 2005 and subsequent deliberations thereof. It is widely perceived that the Act technically rec...

  INTRODUCTION: The Ministry of Corporate Affairs (hereinafter “MCA”) vide notification bearing reference G.S.R. 92(E) , dated 1 st day of February 2021 introduced the Companies (Specification of Definitions Details) Amendment Rules, 2021 for amending the existing definition of ‘small company’ under the law for time being in force. The existence of the Companies Act, 2013 (hereinafter “the Act” ) and subsequent amendments thereof supplemented with rules made thereunder is well established with the object to facilitate effective governance and promote simplicity in compliance for companies domiciled in the Indian soil. A holistic approach towards company law has been the mandate that growth of industries and the dynamic environment has posed. Below elucidated is an observation made to highlight the intention of the law: The Lok Sabha debate (December 16, 2014) : 1.     A World Bank Report stated that that concerning ease of doing business in India, India was ...