October 21, 2016
The Ministry of Corporate Affairs (MCA) has amended the Companies (Management and Administration) Rules, 2014 with the notification of ‘Companies (Management and Administration) Amendment Rules, 2016 [amendment rules]’ Date of notification: September 23, 2016. Register of Members Under Section 88 read with rule 3 every company (having share capital) was required to maintain a register of its members in Form MGT – 1 from the date of its incorporation and every company (not having share capital) to maintain certain information of each member. However, it was noted that many companies have not shifted their existing registered of members to MGT -1 (prescribed format for register of members). Essence of the amendment rules:
- Companies are mandatorily required to update MGT 1 with the information from the date of incorporation.
- In case, some information which is not available with company can be updated once such information is received by the company. – There is no time barrier to this proviso.
- Every company with equity share listed, and
- Every company with not less than 1,000 members.
- Nidhi Company
- an enterprise or institutional investor referred to in Chapter XB or Chapter XC of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009