Chapter-9 : Corporate Affairs

Short Notes or Revision Notes 

GIST of India Year Book 2024

Ministry of Corporate Affairs: Regulating Businesses in India

  • Oversees company formation, mergers, insolvency, and competition matters.
  • Key Acts: Companies Act (2013), Limited Liability Partnership Act (2008), Insolvency and Bankruptcy Code (2016), Competition Act (2002).

Administrative Structure

  • Three-tier structure: Ministry, Registrars of Companies, Official Liquidators.
  • Registrars manage company incorporation.
  • Official Liquidators handle court-ordered company liquidation.

Major Initiatives

  • Ease of Doing Business:
    • SPICe+ form simplifies company incorporation.
    • Central Scrutiny Centre expedites approvals.
    • Decriminalization of certain offenses for a more investor-friendly environment.
  • Companies Act:
    • Enacted in 2013 with subsequent amendments for ease of doing business.
    • CSR (Corporate Social Responsibility) provisions promote investor education and protection.
  • Insolvency and Bankruptcy Code (IBC):
    • Streamlines insolvency resolution for distressed companies.
    • Pre-Packaged Insolvency Resolution Process (PPIRP) introduced for MSMEs.
    • Insolvency and Bankruptcy Board of India (IBBI) regulates the process.
    • National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) handle disputes.
  • E-governance:
    • MCA21 online portal facilitates company registration and filings.
  • Investor Protection:
    • Investor Education and Protection Fund (IEPF) Authority administers unclaimed dividends.
    • National Financial Reporting Authority (NFRA) ensures high-quality auditing standards.

Other Regulatory Bodies

  • Competition Commission of India (CCI): Ensures fair competition and protects consumers.
  • Indian Corporate Law Service (ICLS): Provides legal expertise on corporate matters.

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