Justify the following statements.
1) The MCA was set up by Central Government to fulfill certain objectives.
The objectives of Ministry of Corporate Affairs (MCA):
(1) To administer and enforce the provisions of the Companies Act, 2013 and other allied laws and Acts to enable the business organisations to do their business more easily and efficiently.
(2) To trace and identify quickly non-compliance of the provisions made in the Companies Act. 2013.
(3) To encourage various companies to Improve Corporate Governance and adopt responsible and fair business practices.
(4) To avoid and penalise unfair trade practices and to promote fair competition.
(5) To make available the corporate data to the public, investors and other stakeholders.
(6) To offer various services to the stakeholders and protect their interest and safeguard their rights.
2) The Companies Act, 2013 has given certain Powers to ROC.
The powers of Registrar of Companies as conferred by the Companies Act, 2013:
(1) To extend the time of holding Annual General Meeting (AGM), other than the first AGM by a _ period not more than 3 months, if request letter is received from the company to extend the time for holding AGM,
(2) The Registrar has power to inspect or call for books of accounts, other books and papers. He has the power to ask for additional information necessary for inspection.
(3) He has the power to seek in writing any information or explanation in respect to any document furnished to his office.
(4) The Registrar has the power to seek the Special Court to issue an order for seizure of books and papers of a company if he comes to the conclusion that such records may be destroyed, altered or falsified.
(5) He has the power to remove the name of the liquidated company from the Register of the Companies.
3) The Central Government has empowered NCLT with certain powers.
The powers of National Company Law Tribunal (NCLT):
(1) NCLT has the power to hear and decide civil disputes or all proceedings related to compromise, arrangement, and reconstruction of a company.
(2) NCLT has the power to hear and decide all the winding-up petitions on the ground of insolvency, i.e. inability of the company to pay its debts and on any other grounds.
(3) NCLT has the power to hear and decide petition filed by the company and request letter received from the company for the extension of time for repayment of deposits on genuine grounds.
(4) It has also the power to hear and decide cases in relation to oppression and mismanagement of a company.
(5) If Annual General Meeting (AGM) or Extraordinary General Meeting (EOGM) is not convened by the company in prescribed time or on request of a majority of members, the NCLT has the power to pass an order to call for holding AGM or EOGM of a defaulting company
(6) NCLT has the power to direct a company not to dispose of funds of a company and to freeze the assets of a company for being used against the interest of the company.
(7) NCLT has power to hear and decide grievances or complaints of the investors in regard to the rejection of transfer of shares and other securities.