COMPANIES ACT AMENDED TO FACILITATE MCA21 PROJECT
Amendments in the Companies Act, 1956 have been passed by the Parliament today to facilitate the implementation of MCA21 Project, a major e-Governance initiative of the Ministry of Company Affairs. The amendments are necessary as the Companies Act, 1956 does not contain adequate enabling provisions to support certain online electronic processes that have since become available due to technological advancement and are essential for the successful implementation of the MCA-21 Project. The Act is amended to enable allotment of Director Identification Number (DIN) to any individual, intending to be appointed as a director in a company or to any existing director of a company, for the purpose of his identification as such, through electronic or other form and to provide for penalty for any violation in this regard. Provisions are made to support certain electronic processes in connection with the manner in which electronic records shall be filed with the prescribed fee, authenticated, recorded, registered, maintained and inspected. The Act is amended to ensure secure e-filing and authentication of documents consistent with IT Act, 2000 by making it mandatory for those who have to file such documents, through Digital Signature Certificates (DSCs).
A new section 610C is inserted to enable power to modify any provisions of the Act, by notification, in relation to electronic records including the manner and format in which the electronic records shall be filed.
The changes so enabled through the present limited amendments would be carried through in the new proposals being formulated for comprehensive review of the Companies Act, which is being processed separately.