Amendment To The Companies Act, 1956

June 29, 2010Indian Economic Policiesby EconomyWatch


The Union Cabinet has approved the proposal of Ministry of Company Affairs for introducing limited amendments in Companies Act, 1956 through a Bill called Companies (Amendment) Bill, 2006 in the ensuing session of Parliament. These amendments would enable smooth implementation of the MCA 21 e-governance project - the modernization and e-governance initiative of the Government being implemented by the Ministry of Company Affairs.

The MCA21 project will provide the public-corporate entities and others- easy and secure online access to the MCA services, including filing of documents and public access to corporate information, required to be in the public domain under the statute, at any time and from anywhere. This would result in efficiency in provision of professional services and statutory supervision of corporate processes through the use of modern information technology and computers.

Some of the major changes envisaged through the proposed Amendment Bill are as follows:

  • Allotment of Director Identification Number (DIN) to any individual, intending to be appointed as director in a company or for any existing director of a company, for the purpose of his identification as such, through electronic mode;
  • Ensuring secure e filing and authentication of documents consistent with Information Technology Act, 2000 through Digital Signature Certificates. This modality would prevent any tempering of e-documents subsequent to filing. The e-documents shall be registered, maintained and inspected through electronic mode;
  • Provision of such value added services by the Government through electronic forms from the electronic database created in the data process.
  • Enabling powers to the Government to prescribe rules where necessary to facilitate e filing by corporate entities and access to corporate data statutorily placed in the public domain.

Source :- PIB Press Release

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