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Index

S.No. Name of Lesson Page No.

1 Lesson 1- Introduction to Company Law 3

2 Lesson 2- Share and Share Capital 4

3 Lesson 3- Members and Shareholders 6

4 Lesson 4 – Debt Capital and Deposits 7

5 Lesson 5- Charges 8

6 Lesson 6- Distribution of Profits – Dividend 10

7 Lesson 7- Corporate Social Responsibility 11

8 Lesson 8- Accounts, Audit and Auditors 14

9 Miscellaneous 15

10 Summary 17
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Lesson No.1 - Introduction of company law

Amendment No.1
The Companies (Specification of Definition Details) Amendment Rules, 2022
(Dated 15th September, 2022)

The Ministry of Corporate Affairs (MCA) vide its notification dated September 15, 2022 has
notified “the Companies (Specification of Definition Details) Amendment Rules, 2022”
which has come into force on the date of its publication in the Official Gazette.
According to the amendment the definition of Small Company is modified as under:

“For the purposes of section 2(85)(i) and (ii) of the Companies Act, 2013, the paid up
capital and turnover of the small company shall not exceed rupees four crore and rupees forty
crore respectively.”

Brief Analysis:

Small Co. 2(85) means a

company, other than a
public co

Turnover of which as per profit

Paid-up share capital of which
does not exceed 2 crore 4 crore
rupees or such higher amount
as may be prescribed which
shall not be more than 10 crore
rupees
and loss account for the
immediately preceding financial
year does not exceed 20 crore 40
crore rupees or such higher
amount as may be prescribed
which shall not be more than
100 crore rupees
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Lesson No.2 - Share and Share Capital

Amendment No.2
The Companies (Share Capital and Debentures) Amendment Rules, 2022 (Dated 04th May,
2022)

According to the amendment, in the annexure to the Companies (Share Capital and
Debentures) Rules, 2014, in Form No. SH-4 (Securities Transfer Form), before the
enclosures, the following declaration shall be inserted, namely:-
● Transferee is not required to obtain the Government approval under the Foreign
Exchange Management (Non-debt Instruments) Rules, 2019 prior to transfer of
shares; or

● Transferee is required to obtain the Government approval under the Foreign Exchange
Management (Non-debt Instruments) rules, 2019 prior to transfer of shares and the
same has been obtained and is enclosed herewith.

Brief Analysis:
According to this amendment a declaration has to be made by the transferee prior
to share transfer in Form No. SH-4 regarding whether he/she is required to obtain
Government approval under the Foreign Exchange Management (Non-debt
Instruments) Rules, 2019.

Amendment No.3

The Companies (Prospectus and Allotment of Securities) Amendment Rules, 2022

(Dated 05th May, 2022)

Through this amendment the MCA has inserted a new proviso in rule 14 of the Companies
(Prospectus and Allotment of Securities) Rules, 2014 stating that no offer or invitation to
securities shall be made to the nationals of or entities incorporated in a country sharing
border with India until and unless they have obtained Government approval under the
Foreign Exchange Management (Non-debt Instruments) Rules, 2019 and attached the same
with the private placement offer cum application letter and the relevant modification to
be made in Form PAS-4.
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Lesson No. 3 - Members and Shareholders

Amendment No.4
The Companies (Management and Administration) Amendment Rules, 2022
(Dated 06th April, 2022)

Through this amendment, MCA has inserted a new Rule 14(3) to restrict the inspection of
register or index or return in respect of the members of a company. According to the
Amendment, particulars of
the register or index or return in respect of the members of a Company related to
1. Address or Registered Address (in case of a body corporate);
2. e-mail ID;
3. Unique Identification Number;
4. PAN Number,
shall not be made available for any inspection under sub-section (2) or for taking extracts
or copies under sub-section (3) of Section 94 other Companies Act, 2013.

Lesson No.4 – Debt Capital and Deposits

Amendment No.5
The Companies (Acceptance of Deposits) Amendment Rules, 2022
(Dated 24th August, 2022)

According to the amendment in rule 16 of the Companies (Acceptance of Deposits) Rules,

2014:

Every company to which these rules apply, shall file return of deposit in E Form DPT-3 and
furnish the information contained therein as on the 31st day of March of that year duly
audited by the auditor of the company and declaration to that effect shall be submitted
by the auditor in E Form DPT-3.
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Lesson No.5 - Charges

Amendment No.6
The Companies (Registration of Charges) Amendment Rules, 2022 (Dated 27th April,
2022)

The amendment provides that in rule 3 pertaining to registration of creation or modification

of Charge, a sub-rule (5) shall be inserted, namely: “Nothing contained in this rule shall
apply to any charge required to be created or modified by a banking company under section
77 in favour of the Reserve Bank of India when any loan or advance has been made to it
under sub-clause (d) of clause (4) of section 17 of the Reserve Bank of India Act, 1934.”

Brief Analysis:
The rule 3 shall not apply to any charge required to be created or modified by a
banking company under section 77 (Duty to register charge) in favour of the Reserve
Bank of India when any loan or advance made to it under section 17 (4) (d) of the
RBI Act, 1934.

Amendment No.7

The Companies (Registration of Charges) Second Amendment Rules, 2022

(Dated 29th August, 2022)

According to the amendment, rule 13 is inserted by stating that, signing of charge e-forms
(i.e. Form No. CHG-1, CHG-4, CHG-8 and CHG-9) by insolvency professional or resolution
professional or liquidator for companies under resolution or liquidation, as the case may be
and filed with the Registrar.
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Lesson No.6 - Distribution of Profits – Dividend

Amendment No.8

The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and
Refund) Amendment Rules, 2021
(Dated June 09, 2021)

Insertion of a new clause (fa) in Rule 3 sub-rule 2 of IEPF (Accounting, Audit, Transfer
and Refund) Rules, 2016.
● In addition to the existing amounts which shall be credited to the Investor Education
Protection Fund, a new clause (fa) is inserted in Rule 3 sub-rule 2 of IEPF
(Accounting, Audit, Transfer and Refund) Rules, 2016, which states that all shares
held by the Authority in accordance with proviso of Section 90(9) of the Act and
all the resultant benefits arising out of such shares, without any restrictions shall
also be credited to the fund.

● Section 90(9) of the Companies Act, 2013

Register of significant beneficial owners in a company
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Lesson No.7 - Corporate Social Responsibility

Amendment No.9
General Circular (Dated 5th May, 2021)

➢ The Ministry of Corporate Affairs clarified that spending of CSR funds for COVID-19
is an eligible CSR activity, it is further clarified that spending of CSR funds for
● Creating health infrastructure for COVID care’,
● Establishment of medical oxygen generation and storage plants’,
● Manufacturing and supply of Oxygen concentrators, ventilators, cylinders and
other medical equipment for counteringCOVID-19’ or similar such activities are
eligible CSR activities under item nos. (i) and (xii) of Schedule VII of the
Companies Act, 2013 relating to promotion of health care, including preventive
health care, and disaster management respectively.
➢ Item no. (ix) of Schedule VII of the Companies Act, 2013 which permits contribution
to specified research and development projects as well as contribution to public
funded universities and certain Organisations engaged in conducting research in
science, technology, engineering, and medicine as eligible CSR activities.
➢ The companies including Government companies may undertake the activities or
projects or programmes using CSR funds, directly by themselves or in collaboration
as shared responsibility with other companies.

❖ General Circular (Dated 30th July, 2021)

The Ministry of Corporate Affairs further clarified that spending of CSR funds of COVID- 19
vaccination for persons other than the employees and their families, is an eligible CSR
activity.

❖ General Circular (Dated 26th July, 2022)

The Ministry of Corporate Affairs has issued clarification on spending of CSR funds for
activities related to Har Ghar Trianga like mass scale production and supply of the
National Flag, outreach and amplification efforts and other related activities will be
eligible as CSR activities
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Amendment No.10
The Companies (Accounts) Amendment Rules, 2022
(Dated 11th February, 2022)

By means of this amendment, the MCA has introduced form CSR-2, which is required to
be filed by those entities which fall under the provisions of Section 135 of the
Companies Act, 2013 as an addendum to Form AOC-4 or AOC-4 XBRL or AOC-4 NBFC
(Ind AS), as the case may be.
It was provided that for the preceding F.Y. (2020-21), form CSR-2 shall be filed on or before
31st March 2022, after filing form AOC-4.

Amendment No.11

The Companies (Corporate Social Responsibility Policy) Amendment Rules, 2022

(Dated 20th September, 2022)

1. According to the amendment the proviso to rule 3(1) has been inserted stating that,
a company having any amount in its Unspent Corporate Social Responsibility
Account as per section 135(6) shall constitute a CSR Committee and comply with
the provisions contained in sub -sections (2) to (6) of the said section.
2. Sub-rule (2) is omitted.
3. In case of CSR implementation, the Board shall ensure that the CSR activities are
undertaken by the company itself or through a company established under section
8 of the Act, or a registered public trust or a registered society, exempted under
section 10 or registered under section 12A and approved under 80 G of the Income
Tax Act, 1961, established by the company, either singly or along with any other
company; or a company as mentioned above is having an established track record
of at least three years in undertaking similar activities.
4. The Amendment provides that the cost of social impact assessments, which can be
considered as CSR spending, cannot be greater than 2% of all CSR expenditures for
the applicable financial year or Rupees 50 lakh, whichever is higher.
5. The Amendment also provides for a new format for the annual report on CSR
activities.
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Lesson No.8 - Accounts, Audit and Auditors

Amendment No.12
The Companies (Accounts) Second Amendment Rules, 2022
(Dated 31st March, 2022)

● The date of applicability for the requirement relating to the feature of recording
audit trail in the Accounting Software has been extended from 01st April 2022 to
01st April 2023.
{An Audit Trail is a step by step record by which accounting, trade details or other financial
data can be traced to their source.}

Amendment No.13

The Companies (Accounts) Third Amendment Rules, 2022

(Dated 31st May, 2022)

MCA has extended the date of filing of report on Corporate Social Responsibility in Form
CSR-2 till 30th June, 2022 for the Financial Year 2020-21 and 31st March, 2023 for the
Financial Year 2021-22.

Miscellaneous

Amendment No.14
The MCA notified the commencement date for Section 4 of the Companies
(Amendment)Act, 2020
The Companies (Incorporation) Fifth Amendment Rules, 2021, (Dated July 22, 2021)
The MCA has appointed September 01, 2021 as the commencement date

Section 16 - Rectification of Name of Company

Sec 16(1) - Central Government (Regional Director) may direct the company to change its
name if -
(a) In the opinion of the CG, the name of company is identical with or too nearly
resembles the name of any existing company then the company shall change its
name or new name, as the case may be, within a period of three months from the
issue of such direction after passing an OR for the purpose in the GM;
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(b) within 3 years of incorporation or registration or change of name of company
an application made by registered proprietor of a trademark that the name is
identical with or too nearly resembles to a registered trademark of such proprietor
under the Trademarks Act, 1999, to the CG, it may direct the company to change
its name and the company shall change its name or new name, as the case may
be, within a period of 3 months from the issue of such direction after passing an
OR for the purpose in the GM.

Sec 16(2) - Notice to ROC within 15 days of change of name of company under sub-section
(1) along with CG’s order.

Brief Analysis:
● The time limit of compliance of directions given by the Central Government under
section 16 sub-section (1) clause (b) to change the name of the company has been
reduced from 6 months to 3 months.
● Further, the Central Government has been empowered to allot a new name to the
company, in case of default in complying with its direction instead of imposing
punishment for non-compliance for such default. [Sec16(3)]

The company is however not prevented from subsequently changing its name.

Amendment No.15
The Companies (Incorporation) Third Amendment Rules, 2022
(Dated 18th August, 2022)

According to the amendment, rule 25B is inserted in the Companies

(Incorporation) Rules, 2014, stating physical verification of the registered office of the
company by the Registrar in terms of section 12(9) of the Companies Act, 2013 in presence
of two witnesses of the locality.

The Registrar shall carry the documents as filed on MCA 21 in support of address of the
registered office of the company for the purposes of physical verification and take a
photograph of the registered office. Further a report of physical verification of the registered
office of the company is also required to be in the prescribed format.
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Amendment Old Provision New Provision

No. [Before amendment] [After amendment]

1 PUC-Rs. 2CR & T/O-Rs. 20CR PUC-Rs.4CR & T/O- Rs.40CR

2 No declaration was required Declaration about Govt. approval

3 No such restriction No offer or invitation to nationals

of entities of country sharing
border with India w/o Govt.
approval

No restriction regarding inspection Restrictions in respect of

4 of register or index in respect of Addr./Regd. Addr., Email, UIN, PAN.
members

5 No requirement of Declaration by Declaration by Auditor in Form

Auditor DPT-3

6 (new sub-rule inserted) Charge created by Banking Co. in

favour of RBI need not registered
u/s 77

7 (new sub-rule inserted) Companies u/resolution or

liquidation CHG-1/4/8/9 shall be
signed by IP or RP or Liquidator

8 [new clause (fa) in Rule 3 sub-rule Shares held by authority u/s 90(9),
2 inserted] the benefits arising out of such
shares, w/o any restrictions
credited to fund

9 Clarifications Following spendings are eligible as

CSR activity
1. COVID-19 Activity
2. Contri. To specific
research & development projects
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3. May undertake project
directly by themselves or in
collaborations
4. CSR funds fo
COVID-19 Vaccination campaign
5. Activities related to
HAR GHAR TIRANGA

10 New Form CSR-2 introduced

11 Clarifications 1. CSR Committee for

unspent CSR amount
2. Sub-rule (2) is omitted
3. Cost of Social Impact
Assessment can not exceed 2% of
CSR expenditure or Rs. 50 lakh
whichever is higher
4. New Format for annual
report on CSR activity

12 Date of applicability of audit trail Extended from 1st

in accounting software April 2022 to 1st April 2023
1st April 2022

13 Extension CSR-2 till

30th June 2022 for FY 20-21 &
31st March 2023 for FY 21-22

14 Sec.16(1)(b) Sec.16(1)(b)
Company shall change its name Company shall change its name
w/6 months of order w/3 months of order
Sec.16(3) Sec.16(3)
Imposing Punishment Provision CG(RD) empowered to allot new
name to company

15 New Rule Inserted Physical verification of registered

office by registrar
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NOTES