RULES OF LAW

MCA has issued circular dated 15th January, 2016 to clarify Hindu Undivided Family ( HUF)/its Karta cannot become Partner/ Designated Partner in LLP. As per Section 5 of LLP act, 2008 only an individual or Body Corporate may be a partner in the LLP and HUF cannot be treated as a Body Corporate for the purpose of LLP Act, 2008. http://www.mca.gov.in/Ministry/pdf/General_Circular_2_2016.pdf

Ministry of Corporate Affairs has issued notification dated 13th January, 2016 to enforce sub-section (5), sub-section (6) (except with respect to the manner of administration of the Investor Education and Protection Fund) and sub-section (7) of section 125 of the Companies Act, 2013 w.e.f 13th January, 2016. http://www.mca.gov.in/Ministry/pdf/Commencement_Section125_Notification_13012016.pdf  

Ministry of Corporate Affairs has issued Circular No. 01/2016 dated 12th January, 2016 to Clarify some Frequently Asked Questions on Corporate Social Responsibility under Section 135 of Companies Act, 2013. http://www.mca.gov.in/Ministry/pdf/FAQ_CSR.pdf

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1453201291889.pdf

Central government via notification dated 31 st December, 2015 has delegated to the Regional Directors at Mumbai, Kolkata, Chennai, Delhi, Ahmedabad, Hyderabad and Shillong, the power vested in it under section 208 of the Companies Act, 2013 for receiving the report from the Registrar (having jurisdiction over the place of registered office of the company concerned) or from the Inspector where such report recommends action for violation of offences under the Companies Act, 2013 for which imprisonment of less than two years is provided, (except for violation of offences under Chapter III, IV, section 127, 177 and 178 for which the report shall be received by the Central Government), subject to the conditions, namely:- On receipt of the report referred to in paragraph l, the Regional Director - (a)   shall examine the report and obtain legal advice, if required; (b) shall direct initiation of prosecution if he agrees with the recommendation of the Registrar or inspe...

Central government has notified Companies (Meetings of Board and its Powers) Second Amendment   Rules, 2015 via notification dated 14 th December , 2015 to amend the Companies (Meetings of Board and its Powers) Rules, 2014 and inserted the following rule 6A after rule 6 of the Companies (Meetings of Board and its Powers) Rules, 2014: "6A. Omnibus approval for related party transactions on annual basis.- All related   party   transactions   shall   require   approval   of   the   Audit   Committee   and the Audit Committee may make omnibus approval for related party transactions proposed to be entered into by the company subject to the following conditions, namely:- (1)        The Audit Committee shall, after obtaining approval of the Board of Directors, specify the   criteria for making the omnibus approval which shall include the following, namely:- (a)     ...

Central Government has amended Companies (Audit and Auditors) Rules, 2014 via notification dated 14 th December, 2015 and has substituted rule13 by the following: “13. Reporting of frauds by auditor and other matters:   (1) If an auditor of a company, in the course of the performance of his duties as statutory auditor, has reason to believe that an offence of fraud, which involves or is expected to involve individually an amount of rupees one crore or above, is being or has been committed against the company by its officers or employees, the auditor shall report the matter to the Central Government. (2) The auditor shall report the matter to the Central Government as under:- (a)    the auditor shall report the matter to the Board or the Audit Committee, as the case may be, immediately but not later than two days of his knowledge of the fraud, seeking their reply or observations within forty-five days; (b)    on receipt of such reply or observations...