The enactment of Indian Companies Act, 2013 (PDF) was a significant step to improve the corporate culture in India. However, its implementation and enforcement was due. Ministry of corporate affairs (MCA) initially notified nearly 98 sections of Indian Companies Act, 2013 in the first phase.
Subsequently, MCA notified 183 sections to streamline Indian corporate environment. Companies in India would now be required to comply with these notified provisions of Indian Companies Act, 2013 from April 1st 2014 as MCA has issued a notification (PDF) in this regard that has brought into force many provisions.
MCA has also notified Rules for 11 chapters of the Companies Act, 2013. These include Rules for specifications and definitions, incorporation of companies, prospectus and allotment of securities, shares and debentures, registration of charges, management and administration, declaration and payment of dividend, accounts, appointment and qualification of directors, board meetings and powers, and corporate social responsibility.
As these Sections and Rules would become operational from 1st April 2014 there would be lots of regulatory compliance issues that would be involved. Similarly, it is not easy to migrate from the 1956 Act to the 2013 Act so easily. The times have changed especially due to the techno legal requirements that Indian companies cannot ignored anymore. These include cyber law due diligence (PDF) and cyber security due diligence.