Transitional period for resolutions passed under the Companies Act, 1956 - MoCA clarifies

By Vijay Kumar

THE Ministry of Corporate Affairs has clarified that;

Resolutions approved or passed by companies under relevant applicable provisions of the Old Act during the period from 1st September, 2013 to 31 st March, 2014, can be implemented, in accordance with provisions of the Old Act, notwithstanding the repeal of the relevant provision subject to the conditions

(a) that the implementation of the resolution actually commenced before 1 st April, 2014 and

(b) that this transitional arrangement will be available upto expiry of one year from the passing of the resolution or six months from the commencement of the corresponding provision in New Act whichever is later.

It is also clarified that any amendment of the resolution must be in accordance with the relevant provision of the New Act.

MoCA General Circular No.32/2014, Dated: July 23, 2014