President Ram Nath Kovind Promulgates the Companies (Amendment) Ordinance, 2019

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On January 12, according to a Notification issued by the Ministry of Law and Justice (Legislative Department), President Ram Nath Kovind promulgated “The Companies (Amendment) Ordinance, 2019”, an Ordinance further to amend the Companies Act, 2013.

The Notification states as follows:

WHEREAS the Companies (Amendment) Ordinance, 2018 was promulgated by the President on the 2 day of November 2018;

AND WHEREAS the Companies (Amendment) Bill, 2019 to replace the Companies (Amendment) Ordinance, 2018 has been passed by the House of People on the 4th day of January 2019 and is pending in the Council of States;

AND WHEREAS the Companies (Amendment) Bill, 2019 could not be taken up for consideration and passing in the Council of States;

AND WHEREAS the Companies (Amendment) Ordinance, 2018 will cease to operate on the 21st day of January 2019;

AND WHEREAS it is considered necessary to give continued effect to the provisions of the Companies (Amendment) Ordinance, 2018;

AND WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action;

Now, THEREFORE, in exercise of the powers conferred by Clause (1) of Article 123 of the Constitution, the President is pleased to promulgate the following Ordinance: This Ordinance may be called the Companies (Amendment) Ordinance, 2019. It shall be deemed to have come into force on the 2nd day of November 2018.

Notably, the Companies (Amendment) Ordinance, 2018 is hereby repealed. Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Ordinance.

In the 2019 Ordinance, several sections have been amended including: Section 2, Section 12, Section 14, Section 53, Section 64, Section 77, Section 86, Section 90, Section 92, Section 102, Section 105, Section 117, Section 121, Section 137, Section 140, Section 157, Section 164, Section 165, Section 191, Section 197, Section 203, Section 238, Section 248, Section 441, Section 446B, Section 447, and Section 454.

Two new sections have been inserted, namely, Section 10A (Commencement of business, etc.) and Section 454A (Penalty for repeated default).

Two sections have been substituted, namely, Section 87 (Rectification by Central Government in Register of charges) and Section 159 (Penalty for default of certain provisions).

To read the entire official Ordinance in detail, please view the file attached herein.

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