RULES OF LAW

Central government has exempted banking Companies, insurance Companies, power sector Companies, non-banking financial companies and housing finance companies from filing of Documents and forms in Extensible Business Reporting Language under rule 3 of Companies (Filing of Documents and Forms in Extensible Business reporting Language)  Rules, 2015 via notification dated 4th April, 2016. http://www.mca.gov.in/Ministry/pdf/Rules_06042016.pdf

If all the members of the Company agree, the offer for buy back may remain open for a period of less then fifteen days as the Central government has added the following proviso in the rule 17 after sub- rule (5) of Companies (Share Capital and Debentures) Rules, 2014 via notification dated 29th March, 2016: “Provided that where all members of a company agree, the offer for buy-back may remain open for a period less than fifteen days.’’

The Central government has substituted  Form INC- 11 in the Companies (Incorporation) Rules, 2014 with the new form INC- 11 w.e.f 23rd March, 2016 via  Companies (Incorporation) Second Amendment Rules, 2016.

In exercise of the powers conferred under the proviso to clause (d) of sub-section (2) of section 68 of the Companies Act, 2013, the Central Government has notified via order dated 10th March,2106 that the debt to capital and free reserves ratio shall be 6:1 for government companies within the meaning of clause (45) of section 2 of the Companies Act, 2013 which carry on Non-Banking Finance Institution activities and Housing Finance activities.

Central Government has amended rule 17 of Companies (Share Capital and Debentures) Rules, 2014 via notification dated 10th March, 2016 and inserted following proviso in rule 17, in sub-rule (1), in clause (n), after sub-clause (iii): "Provided that where the audited accounts are more than six months old, the calculations with reference to buy back shall be on the basis of un-audited accounts not older than six months from the date of offer document which are subjected to limited review by the auditors of the company". http://www.mca.gov.in/Ministry/pdf/Notification_11032016.pdf  

Central government w.e.f 26.01.2016 has amended rule 8, rule 9 and rule 36 of Companies (Incorporation) Rules, 2014 and substituted the existing eform INC-1 with new eForm INC-1. http://mca.gov.in/Ministry/pdf/Amendement_Rules_22012016.pdf

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