The President of India had, on November 2, 2018, given his assent to the promulgation of the Companies (Amendment) Ordinance, 2018 (“Ordinance”) as the Parliament is not in session. The following are the 10 important amendments made by the Ordinance: 1. Re-introduction of declaration of commencement of business – Section 10A(1)
- This provision was removed in the Companies Amendment Act, 2015 and is reintroduced now to tackle “shell companies”
- Consequent amendment has been made to Section 248 to strike off those companies which failed to file declaration under Section 10A(1)
- Aimed at tackling “shell companies”
- In addition to Sec. 124(6) this is another cause introduced by the Govt. for transfer of shares to IEPF.
- This is an effort by the Govt. to ensure that the individuals ultimately holding the beneficial interest in a share shall be traced, failing which such shares shall be transferred to IEPF.
- Additional disqualification introduced by the amendment ordinance.
- This leads to vacation of office of such Director.