Ministry of Corporate Affairs

Introduction

The ministry of corporate affairs works according to the Companies Act 2013, companies act 1947 and the limited liability partnership act, 2008. It is known as an Indian government ministry. It also works according to the administration of Insolvency and Bankruptcy Code, 2016 and other rules and regulations which helps in regulating the functioning of the corporate sector. It regulates enterprises of the industrial and services sector. The main headquarters of the ministry of corporate affairs is in Shastri Bhawan, New Delhi. The ministry of corporate affairs is mostly held and served by civil servants who are a part of ICLS Cadre. To get selected in the ministry of corporate affairs, the candidates have to pass an entrance test. They have to sit for the Civil Services Examination which is conducted by the Union Public Service Commission. The highest post has been fixed at the apex scale which is very difficult to reach. It is the post of Director General of Corporate Affairs(DGCoA) for the ICLS. Nirmala Sitaraman is the present Minister  for corporate affairs and Rao Inderjit Singh is the state minister for corporate affairs. 

Administration

The Ministry of corporate affairs administers not only administer Companies Act as well as limited liability partnership act and bankruptcy code. It administers a lot more things. The monopolies and restrictive trade practices act,1969 and the Chartered Accountants act are also administered by corporate affairs. The Ministry of corporate affairs has formed a committee which is responsible for framing National Competition Policy and formulate ammendments. These come under the chairmanship of Dhanendra Kumar who was the former chairman of competition commission of India.  

MCA protects investors and and provide many important services and benefits to the stakeholders. When the stakeholders provide their name, they have to keep in mind that the proposed name which they are selecting should not contain any henious word or words which are prohibited under Section 4(2) and (3) Rule 8 of the Companies Act, 2013. They have to check the trademark search as well. 

Roles and Responsibilities

  • The ministry of corporate affairs administers the Competition Act, 2002 and helps in preventing adverse affects on competition and promotes competition all over in the market. It helps in sustaining competition and protects the interest of the consumers under the Competition Act, 2002 through the commission which is set up. 
  • MCA supervises three 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(ICAI). They come under three separate acts of parliament which helps in proper growth of professions. 
  • The MCA carries the functions of central government and administers the Partnership Act 1932, companies donations to national funds act 1951 and societies registration act 1980. 

If a company wants to change the object clause of ministry of corporate affairs, he has to fill a form MGT-14 and pass a necessary resolution. Intimating ministry of corporate affairs to change the registered office of the company, if the office has been changed within the local limits of the city, a form INC-22 has been filed. If the company wishes to shift the office outside the city, then eform MGT- 14 and INC-22 has been filled and submit to the registrar of companies. If the company changes the office of MCA from one jurisdiction to another, or one state to another, the company has to fill four forms. Form MGT-14, Form INC-23 , INC-22 and INC-28 has to be filled. 

The Ministry of corporate affairs can bring changes in Managing directors, manager and secretary of a company by filling an eform DIR-12 with RoCs within 30 days prior to the starting date. 

Aishwarya Says:

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