Companies (Amendment) Bill 2016 NCLT Related
Provisions
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The Companies Law Committee in
its report dated 01/02/2016 noted that after the honorable Supreme Court’s
Order of May, 2015, the government had initiated the process of constituting
the ‘National Company Law Tribunal’. The Committee felt that changes in the
Companies Act, 2013, in section 409(3)(a) & (e), 411(3) and 412(2), as
directed by the honorable Supreme Court, should be included in the Act.
Accordingly the Companies (Amendment) Bill 2016 proposes amendments in
section 409, section 411 and section 412 of Companies Act, 2013 with respect to
the following ;-
a.
Qualification of
Technical Members of NCLT.
Qualification of
Technical Members of NCLT.
b. Constitution of
selection committee with respect selection of members of tribunal and appellate
tribunal.
selection committee with respect selection of members of tribunal and appellate
tribunal.
Amendments
Proposed in Section 409 (Clause 78)
Proposed in Section 409 (Clause 78)
(i) In Section 409 of
the principal Act, in Sub section (3),-(i) in clause (a), for the words
“out of which at lease three years shall be in the pay scale of Joint
Secretary to the Government of India or equivalent or above in the that
service”, the words “and has been holding the rank of secretary or
additional secretary to the Government of India” shall be substituted ;
the principal Act, in Sub section (3),-(i) in clause (a), for the words
“out of which at lease three years shall be in the pay scale of Joint
Secretary to the Government of India or equivalent or above in the that
service”, the words “and has been holding the rank of secretary or
additional secretary to the Government of India” shall be substituted ;
(ii) For Cluase (e) the
following clause shall be substituted namely :- “(e) is a person of proven
ability, integrity and standing having special knowledge and professional
experience of not less than fifteen years in industrial finance, industrial management,
industrial reconstruction, investment and accountancy.”
following clause shall be substituted namely :- “(e) is a person of proven
ability, integrity and standing having special knowledge and professional
experience of not less than fifteen years in industrial finance, industrial management,
industrial reconstruction, investment and accountancy.”
Amendments
Proposed in Section 411 (Clause 79)
Proposed in Section 411 (Clause 79)
In section 411 of the principal Act,
for sub section (3), the following sub section shall be substituted, namely :-
for sub section (3), the following sub section shall be substituted, namely :-
“(3) A technical member shall be
a person of proven ability, integrity and standing having special knowledge and
professional experience of not less than twenty five years in industrial
finance, industrial management, industrial reconstruction, investment and
accountancy”.
a person of proven ability, integrity and standing having special knowledge and
professional experience of not less than twenty five years in industrial
finance, industrial management, industrial reconstruction, investment and
accountancy”.
Amendments
Proposed in Section 412 (Clause 80)
Proposed in Section 412 (Clause 80)
In section 412 of the principal Act,
for sub section (2), the following sub section shall be substituted, namely :-
for sub section (2), the following sub section shall be substituted, namely :-
“(2) The members
of the Tribunal and the technical members of the Appellate Tribunal shall be
appointed on the recommendation of a Selection Committee consisting of –
of the Tribunal and the technical members of the Appellate Tribunal shall be
appointed on the recommendation of a Selection Committee consisting of –
(a) Chief Justice of India or his nominee –
Chairpeson;
Chairpeson;
(b) A senior judge of the supreme court or
Chief Justice of High Court – Member;
Chief Justice of High Court – Member;
(c) Secretary in the ministry of Corporate Affairs – Member; and
(d) Secretary in the ministry of Law and
Justice – Member.
Justice – Member.
(2A) Where in a
meeting of the selection committee, there is equality of votes on any matter,
the chairperson shall have a casting vote.”
meeting of the selection committee, there is equality of votes on any matter,
the chairperson shall have a casting vote.”