NCLT(National Company Law Tribunal)-NEW HORIZONS OF THE ...€¦ · The National Company Law Tribunal (NCLT) was constituted on 1.6.2016 by The Minister Of Corporate Affairs(MCA)

MALAYSIAN ASSOCIATION OF COMPANY SECRETARIES

(PERSATUAN SETIAUSAHA SYARIKAT MALAYSIA)

(Approved Body under Fourth Schedule of the Companies Act, 2016)

24TH NOVEMBER 2017

AL SAJ CONVENTION

CENTRE,TRIVANDRUM,KERALA,INDIA.

By MACS Speaker:

TANG CHAN MING FCCS, CA(M), FCTIM

NCLT(National Company Law Tribunal)-NEW

HORIZONS OF THE PROFESSION AND TASKS AHEAD

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All rights reserved

New Horizon Of The profession

The National Company Law Tribunal (NCLT) was constituted on 1.6.2016 by The Minister Of Corporate Affairs(MCA)

The National Company Law Tribunal was set up under section 408 of the Companies Act 2013.

The objective of setting up this tribunal is to substitute the existing Company Law Board(CLB) as well as the BIFR(Board for industrial and Reconstruction) on the one hand and the Courts of Law on the other hand thus effectively putting into the hand of one institution the powers and functions which are held and carried out by three different institution.

NATIONAL COMPANY LAW TRIBUNAL

MACS © 2017 All rights reserved

New Horizon Of The profession

NCLT shall be empowered to deal with all matters relating to company ; inter alia ,merger/amalgamation, acquisition and reconstruction , revival and rehabilitation , winding up of companies, remedy of oppression and mismanagement, de-registration of Company and etc.



• Any person who is aggrieved by the order or decision which is passed by NCLT can appeal against such order to Appellate Tribunal(NCLAT) with object of redressal.(Appeal any order within 45 days on question of Law).

• Any person who is unsatisfied with the decision of NCLAT may appeal on question of Law within 60 days to the Supreme Court.

• This new implementation of NCLT have certain definite benefits such as removing the burden of legal work from the shoulder of the company court as well as the other institutions which are required for the smooth working and speedy conveyance of justice.

• In order for the National Company Law tribunal and the rationale of implementing it to be successful the independence of the tribunal must be ensured and preserved.



• NCLT is a specialized court for corporate registered in India.

• NCLT will reduce the multiplicity of litigation before forums and courts.

• NCLT has multiple branches and is able to provide justice at a close range.

• NCLT consists of both judicial and technical members while deciding on matter,

• The time taken to windup a company is reduced.

• Speedy disposal of cases will help reduce the number of cases.

• NCLT & NCLAT have exclusive jurisdiction. And etc…



Tasks ahead

SCOPE FOR COMPANY SECRETARIES

Establishment of NCLT/NCLAT shall offer various new opportunities to Practicing Company Secretaries for the tasks as follow:

1. Compromise and arrangement,

2. Sick Companies,

3. Winding UP(only Notified section),

4. Reduction of capital,

5. PCS as member of NCLT,

6. Act as Company representative in all other related matters.

TASK AHEAD


The Company Secretaries is one of the authorized professional by section 432 of the Companies Act 2013 to appear before the tribunal or appellate tribunal to deal with any proceeding or appeal make on half of clients.

A practicing Company Secretary can be Appointed as a Technical Member of NCLT, provided he has 15 years working experience as secretary in whole-time practice.

TASKS AHEAD


With the implementation of the NCLT & NCLAT on 1.6.2016 , company secretaries must have the new mindset and knowledge to appear before the tribunals to discuss and settle the jobs entrusted by the clients.

In view of the new opportunities emerging with Tribunal, the practicing Company secretaries should standardize their competencies with the global benchmarks to provide value added services to the tribunal and the customers.

It is a good effort by the Indian Authorities to set up National Company Law Tribunal as a tribunal can be less costly than going through the courts and moreover the tribunal can be staff by specialist in company Law and thus disputes could be more efficiently settled.

TASKS AHEAD


• In Malaysia we do not have the Company Tribunal to deal with the company matters like merger/amalgamation, acquisition and reconstruction, revival and rehabilitation and winding up of companies.

• The companies Act 2016 makes some significant changes to Malaysia ‘s corporate insolvency regime, as it introduces two insolvency processes; judicial management and voluntary administration.

MALAYSIA EXPERIENCE


The other provisions affecting insolvency law and practice in the Companies Act 2016 codify certain established common law principles applicable in insolvency and increase penalties and threshold amounts.

In Malaysia, Arrangements and Reconstructions is covered under section 365 – 371 of the Companies Act 2016. Corporate Rescue Mechanism and corporate voluntary Arrangement is covered under section 394 – 402 of the companies Act 2016. Judicial Management is covered under section 403 -430 of the companies Act 2016.

MALAYSIA EXPERIENCE


In conclusion , the introduction of NCLT which operative on 1.6.2016 will bring new horizon to the company secretarial profession and the tasks ahead that we have to equip with sufficient level of professionalism in order to provide a better service to our clients.

Any how, with this changes to the jurisdiction of the company law , will give opportunity to the well prepared company secretarial profession and he who is able to capitalize this coming of new horizon.

CONCLUSION



Documents

NCLT(National Company Law Tribunal)-NEW HORIZONS OF THE ...€¦ · The National Company Law Tribunal (NCLT) was constituted on 1.6.2016 by The Minister Of Corporate Affairs(MCA)