Know the changes in the Companies Act, 2013 by the 2018 Ordinance

1. Know the changes in the Companies Act, 2013 by the 2018 Ordinance The companies Act 2013 replaced the Companies Act 1956 to regulate the 1.43 million registered companies in India. Nearly one and a half million companies need the right law to regulate their incorporation, responsibilities, and dissolution. The government brought the 2018 ordinance to the parliament to further improve the law. If the 2013 act reduced the 658 sections of the 1956 Act to 484 sections, 2018 amended 31 sections of it. The key objective to amend was to facilitate ease of doing business and enhance corporate compliance. Also, the colonial sedition laws in India are now put on hold by the Supreme Court of India as the government wants to make any amendments to them. So, let us check about the oppressive sedition law brought by the British Raj to suppress dissent and the amendments made to the Companies Act 2013 by the 2018 Ordinance. What is Sedition law in India, and why did the Supreme Court put a temporary hold on it? During the rise of revolt in India against their rule, the British government introduced the sedition law in 1870. It is the reason for the imprisonment of many leaders fighting for independence, like Gandhi, who said that the law is “the prince among the political sections of the IPC designed to suppress the liberty of the citizen.” In 1962, the Supreme court put some restrictions on its scope for preventing misuse but upheld its constitutionality. In 1973, sedition became a cognizable offence for the first time in India to even arrest anyone without a police warrant. Even in 2020, 22 cases got filed under Section 124A of IPC or the sedition law in India against journalists reporting the Hathras rape case in UP. But the Supreme Court has put a temporary hold on it as the Attorney General of India informed about the government’s amendments to it soon. What are the amendments of the Companies Act 2013 by the 2018 Ordinance? If the Companies Act 2013 replaced the Companies Act 1956, the government brought many more amendments to 31 sections of it by 2018, Ordinance. A few changes for the companies to comply with and benefit from include.

2. ●Shifts the jurisdiction from the special courts to in-house jurisdiction for 16 types of corporate offences to reduce their burden of caseloads by 60% to focus on more serious corporate offences. ●Has put on hold the borrowing powers of the companies that have not paid the value of shares agreed in the declaration filed by it and until submitting the verification of the registered office within 30 days of its incorporation ●Removal of the company’s name from the register of companies if not filing a declaration within 180 days of incorporation and the registrar having a reasonable cause of concern for the company not conducting any business ●Disqualifies company directors holding over 20 directorships, of which public company directorships should be only 10 ●Reduced the penalty of one person and small companies to half of the normal companies To know more about the changes of the Companies Act, 2013 by 2018, Ordinance, and the sedition law in India, contact the best lawyers. Visit Site: https://www.obhanandassociates.com/ Mail: email@obhans.com Call On: +91 1140200200 Address: N - 94, Second Floor, Panchshila Park, Block N, New Delhi, 110017, India