The Ministry of Corporate Affairs (MCA) has notified a list of provisions of the Companies Act, 2013 that came into force with effect from 12 September 2013.
A cursory review of the list of sections does not indicate any coherent pattern regarding which aspects of the new legislation are being brought into force, and the sections are peppered across various chapters. The only seeming common thread is that most of them do not require rules to be promulgated by the Central Government in order to make them operational. This approach of piecemeal effectiveness is bound to cause significant practical problems given there is no clarity regarding the legislative/regulatory rationale for why these sections have been brought into force first.
The social media is abuzz with another curious question posed by some lawyers. Section 465 of the new legislation, which repeals the Companies Act, 1956, has not been notified. Hence, there could be a question as to whether the new provisions notified will operate in addition to the provisions of the 1956 Act. It is not clear as to what would happen in case of a conflict.