Posted by: CS Shilpi Thapar
Ministry of Corporate Affairs [MCA], Government of India, has on, 17 March 2011, superseded its earlier notifications delegating certain powers and functions of the Central Government under the Companies Act, 1956 [the Act] to the Regional Directors [RDs] and Registrar of Companies [ROC]. As per the revised notifications, following are the significant changes:
Earlier, the grant of license for formation of a company which intends to apply its profits or other income in promoting its objects (i.e. objects of promoting commerce, art, science, religion, charity or any other useful object) and prohibits payment of any dividend to its members [popularly known as section 25 company] was delegated to the RD. Now, such powers to grant license under section 25 has been delegated to the ROC.
There is no other change in the list of delegation of powers and functions to RD and ROC. The proposals are one of many being implemented to streamline the existing Company law procedures and remove the redundant provisions. The aforesaid change is likely to reduce the time for incorporation of a section 25 company.
Source: Notification No. F. No. 5/7/201 1-C.L-V dated March 17, 2011, Notification No. F. No. 9/1/201 1-C.L-V dated March 1 7, 2011 and Notification No. F. No. 5/7/2011-C.L-V dated March 17, 2011.