Ministry of corporate affairs (MCA)

Circulars:

1. Whether Hindu Undivided Family HUF)/ its Karta can become partner/Designated Partner (DP) in Limited Liability Partnership (LLP) vide MCA Circular No. 02/2016

   Reference is invited to General Circular No. 13/2013 wherein, in paragraph 2, it has been clarified that “as per section 5 of LLP Act, 2008 only an individual or body corporate may be a partner in Limited Liability Partnership Act, 2008. A HUF cannot be treated as a body corporate for the purposes of LLP Act, 2008. Therefore, a HUF or its Karta cannot become partner or designated partner in LLP.

   However, the clarification inadvertently does not mention partner in the last sentence of the paragraph quoted above. It is hereby clarified that a HUF or its Karta cannot become partner or designated partner in LLP vide MCA Circular No. 02/2016 dated 15.1.2016.

2. Frequently Asked Questions (FAQs) with regard to Corporate Social Responsibility under section 135 of the Companies Act,2013.

   The Ministry of Corporate Affairs has come out with a set of FAQs along with the response of the Ministry for providing effective implementation of CSR. This has been announced vide MCA Circular No. 01/2016 dated 12.1.2016

Notifications:

1. Companies (Incorporation) Amendment Rules, 2016 as per MCA notification dated 22nd January, 2016 under section 396 of the Companies Act, 2013

   In exercise of the powers conferred by sub-sections (1) and (2) of section 396 of the Companies Act, 2013 (18 of 2013) (herein after referred to as the Act), the Central Government has established a Central Registration Centre (CRC) having territorial jurisdiction all over India, for discharging or carrying out the function of processing and disposal of applications for reservation of names under the provisions of the said Act.

   All applications for reservation of name (INC-01) would be directed to “Central Registration centre” (CRC) from 26^th January, 2016 as notified. The operations of CRC commenced with effect from 27^th January, 2016.

2. Commencement of sub-sections (5), (6) and (7) of section 125 of Companies Act, 2013 as per MCA notification dated 13th January,2016

   In exercise of the powers conferred by sub-section (3) of Section 1 of the Companies Act, 2013 (18 of 2013), the Central Government has appointed 13th day of January, 2016 as the date on which the provisions of 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 said Act shall come into force.

Rules:

1. Companies (Incorporation) Amendment Rules, 2016 as on 22nd January 2016
   1. These rules may be called the Companies (Incorporation) Amendment Rules, 2016.
   2. In Companies Incorporation Rules, 2014 (hereinafter referred as principal rules), in rule 8,-
      1. in sub-ru1e (2)
         1. sub-clause (ii) of clause (b) shall be omitted;
         2. sub-clause (x) of clause (b) shall be omitted; and
         3. sub-clause (xvii) of clause (b) shall be omitted.
      2. sub-rule (3) shall be omitted.
      3. sub-rule (a) shall be omitted.
   3. In the principal rules, for Rule 9 the following shall be substituted namely :-

      “9. Reservation of name – An application for the reservation of a name shall be made in Form No. INC.I along with the fee as provided in the Companies (Registration offices and fees) Rules, 2014 which may be approved or rejected, as the case may be, by the Registrar, Central Registration Centre.”

   4. In the principal rules, in rule 36, in sub-rule(12)
      1. after sub-clause (b), the following shall be inserted.-

         ‘(ba) After the resubmission of the documents and on completion of second opportunity, if the registrar still finds that the documents are defective or incomplete, he shall give third opportunity to remove such  defects or deficiencies;’

         Provided that the total period for re-submission of documents shall not exceed a total period of 30 days.

      2. in sub-clause (c), for the words ‘two opportunities’, the words ‘three opportunities’ shall be substituted.
   5. In the principal rules, for the existing Form No. INC-1, the new form no. INC- I shall be substituted.
2. Investor Education and Protection Fund Authority (Appointment of Chairperson and Members, holding of meetings and provision for offices and officers) Rules, 2016

   In exercise of the powers conferred by sub-sections (5), (6) and (7) of section 125 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government has made the Investor Education and Protection Fund Authority (Appointment of Chairperson and Members, holding of meetings and provision for offices and officers) Rules, 2016. All the details have been mentioned in the notification. The notification is effective from 13^th January, 2016.