Explain the following terms/concepts.
1) Ministry of Corporate Affairs (MCA)
(1) the overall responsibility for the enforcement of Company Law in India lies with the Central Government. It acts through the Ministry of Corporate Affairs. To enable smooth functioning, the Central Government has delegated its power to Ministry of Corporate Affairs (MCA) to regulate the functioning of the corporate sector. It is headed by the Minister of Corporate Affairs and assisted by the Minister of State of Corporate Affairs.
(2) Main function of MCA is to administer the Companies Act, 2013, the Partnership Act, 1932, the Limited Liability Partnership Act, 2008, the Competition Act, 2002 and the Societies Regulation Act, 1860. MCA also supervises professional bodies such as Institute of Chartered Accountants of India (ICAI), Institute of Company Secretaries of India (ICSI) and Institute of Cost Accountants of India.
2) Registrar of Companies (ROC)
(1) As per the provisions made under the Companies Act, 2013, the Central Government is empowered to appoint the Registrar of Companies for each state for registration of companies and administering the Companies Act in the state over which it has jurisdiction. Registrars of Companies are full time field officers who deal directly with the companies which are either registered or in the process of registration. They have wide powers and responsibilities in administering the Companies Act.
(2) ROCs examine the various documents filed with it by the companies in compliance with the Companies Act, 2013. If any document received by it is incomplete or found defective, ROCs have to return the said document to the company to complete it or to rectify it within prescribed time. ROCs have to take decisions on the documents filed with it within 30 days. Some of the powers are vested in the ROC by the Companies Act, 2013 and some of the powers are delegated to it by the Central Government. Thus, ROCs are the main instruments through which the actual implementation of the provisions of the Companies Act is ensured.
3) National Company Law Tribunal (NCLT)
(1) National Company Law Tribunal (NCLT) is a quasi-judicial body established in June 2016 by the Central Government to grant approvals and decide civil disputes under the provisions of the Companies Act. 2013. NCLT operates through ‘Benches’ consisting of 2 members, i.e. a judicial member and a technical member. At present there are as many as 15 benches and the principal Bench is functioning at New Delhi. Some more benches are being created.
(2) NCLT is required to decide and dispose off every application or petition within 3 months from the date of receiving the application or petition. NCLT is required to give a reasonable opportunity to both parties to explain their views to justify their case and then it has to give a decision and pass its order. Any party aggrieved by an order of the N CLT may within 45 days from date of receiving a copy of the order, file an appeal to the National Company Law Appellate Tribunal (NCLAT).
4) National Company Law Appellate Tribunal (NCLAT)
(1) As per the provisions made under the Companies Act, 2013, the Central Government is empowered to set up a National Company Law Appellate Tribunal (NCLAT) to hear and decide appeals against the order passed by NCLT and the National Financing Reporting Agency. The NCLAT was set up in June 2016. It has maximum 11 members comprising of judicial members and technical members and headed by a competent chairperson. The NCLAT is also recognised as the Appellate Tribunal for hearing and deciding appeals against the orders passed by Insolvency and Bankruptcy Board of India and Competition Commission of India.
(2) The NCLAT after studying the case and hearing both the parties may confirm, modify or set aside the order passed by tribunal or Insolvency and Bankruptcy Board and Competition Commission of India. Any party aggrieved by an order of NCLAT may within 60 days of receipt of the ‘copy of order, tile and appeal to the Supreme Court.
5) Securities and Exchange Board of India (SEBI)