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Tuesday, 15 November 2016

IPCC Company Law Amendments May 2017



IPCC Company Law Amendments May 2017

CA IPCC Company Law Amendments for May 2017 are quite high in number this time. Companies Act, 2013 has been amended many times for the past one year, which has led to bringing in new amendments in the IPCC Law paper. So, In this post, we will cover only the amendments in Company law portion.
The Amendments listed out below are applicable only for May 2017 CA IPCC exams.
There are total 27 Amendments in the Company Law portion. However, out of these, only six are applicable at IPCC level.

Amendments have been brought in almost all the topics like Deposits, Company Basics and General Meetings.
“There are few notable Amendments in Company Law Syllabus applicable for November 2016 Exams, which are presented below”

Amendments in Company Law May 2017

  • Public Companies now need to file a Declaration with SEBI and RBI (Only Certain Companies) and obtain approval at the time of filing the Incorporation Documents with the ROC. Earlier, there is no such rule to get the approval.
  • Minimum Capital Requirements of Rs.1 Lakh and Rs.5 Lakh removed for Companies. Now Public and Private Companies don’t have any such Minimum requirement.
  • In case of any Contravention in Accepting Deposits from Public, Companies now need to pay a Minimum fine of Rs.1 Crore and a Max of Rs.10 Crore.
  • Notice period for Section 8 (NPO) Companies for General Meetings reduced to 14 days. Earlier it is 21 days.
  • A Company need to serve documents only on such members who are holding at least Rs.1,000in face value of shares or 1% of total paid up share capital. Earlier, a company is bound to serve documents to all the members.
  • When a company goes for further issue of Share Capital, an Ordinary Resolution has to be passed. Earlier, it is SR.

Sections are not applicable for May 2017 Exam:

Section 48: Variation of shareholders right
Section 66: Reduction of share capital
Section 75: damages for fraud
Section 97: Power of Tribunal to call AGM
Section 98: Power of Tribunal to call meetings of members
Section 99: Punishment for default in complying with provisions of this section.
There are few other minor amendments in the Companies Act, which students can totally ignore, as these will be asked in CA Final exams only.

Importance of Amendments – May 2017

Students must put stress on these amendments because, most of the questions in November 2016 and May 2017 exams will be based on these amendments only.
Many Toppers of CA IPCC exams has mentioned in their interviews that, at least 20 marks will be asked in exams from these amendments only.
ICAI President, has also mentioned the same in the recently concluded National Convention for Students.