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MCA notifies Section 36 of Companies (Amendment) Act 2017 effective from 31st July 2018

MCA notifies section 36 of Companies (Amendment) Act, 2017

MCA notifies section 36 of Companies (Amendment) Act, 2017 with effect from 31st July, 2018. Vide section 36 of Companies (Amendment) Act, 2017 it has made changes in section 134 of Companies Act, 2013 which is related to Financial statement,Board’s report, etc. Text of the Notification is as follows:-

Government of India
Ministry of Corporate Affairs
Notification

New Delhi, the 31st July, 2018

S.O. (E).- In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2017 (1 of 2018), the Central Government hereby appoints the day of 31st July, 2018 as the date on which the provisions of Section 36 of the said Act shall come into force.

[File No. 1 /11/2018-CL.I]

(K.V.R Murty)

Joint Secretary to the Government of India

—————————————————————————————————————————————

Amendment to section 134 of Companies Act, 2013 vide section 36 of Companies (Amendment) Act, 2017

Extract of section 36 of Companies (Amendment) Act, 2017

36. In section 134 of the principal Act,

(a) for sub-section (1), the following sub-section shall be substituted, namely:

“(1) The financial statement, including consolidated financial statement, if any, shall be approved by the Board of Directors before they are signed on behalf of the Board by the chairperson of the company where he is authorised by the Board or by two directors out of which one shall be managing director, if any, and the Chief Executive Officer, the Chief Financial Officer and the company secretary of the company, wherever they are appointed, or in the case of One Person Company, only by one director, for submission to the auditor for his report thereon.”;

(b) in sub-section (3),‑

(i) for clause (a), the following clause shall be substituted, namely:—

” (a) the web address, if any, where annual return referred to in sub-section (3) of section 92 has been placed;”;

(ii) in clause (p), for the words “annual evaluation has been made by the Board of its own performance and that of its committees and individual directors”, the words “annual evaluation of the performance of the Board, its Committees and of individual directors has been made” shall be substituted;

(iii) after clause (q), the following provisos shall be inserted, namely:

“Provided that where disclosures referred to in this sub-section have been included in the financial statements, such disclosures shall be referred to instead of being repeated in the Board’s report:

Provided further that where the policy referred to in clause (e) or clause (o) is made available on company’s website, if any, it shall be sufficient compliance of the requirements under such clauses if the salient features of the policy and any change therein are specified in brief in the Board’s report and the web-address is indicated therein at which the complete policy is available.”;

(c) after sub-section (3), the following sub-section shall be inserted, namely:

“(3A) The Central Government may prescribe an abridged Board’s report, for the purpose of compliance with this section by One Person Company or small company.”.

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