GANGTOK, 23 Oct: Sikkim Sangram Parishad Party president, Nar Bahadur Bhandari, has rejected the ruling party’s claim that the Registration of Companies (Sikkim) Act, 1961, has not been repealed as “false propaganda”. Mr. Bhandari contends that the Companies Act 2013 has already been extended to Sikkim.
An SSP release informs that when Mr Bhandari was the president of Sikkim Pradesh Congress Committee, he had written to Minister of State for Corporate Affairs Sachin Pilot regarding the Companies Bill 2012. In response, Mr Bhandari recently received a letter from Mr. Pilot explaining that the extension of Companies Act 2013 to Sikkim and the repeal of Registration of Companies (Sikkim) Act, 1961, did not violate Article 371F of the Constitution.
Pointing out that Article 371F provides for ‘competent’ authorities to repeal old laws, the letter states “Companies Act, 2013 is a Law enacted by the competent Legislature as contemplated by Article 371F (k) and its application to Sikkim is strictly in accordance with that provision.”
The letter further explains, “The registration of Companies Act, Sikkim, 1961 is a summary Legislation providing only such matters as incorporation and registration of Companies. It does not address matters so crucially required for smooth functioning of Companies such as raising/ maintaining Capital, borrowings power and limits. Level of accountability in the management/ administration and role of various organs therein; manner of decision making. Protection of minority share holders, corporate restructuring and winding up/ dissolution of Companies etc. The Company Act, 2013, on the other hand, is a comprehensive Legislation incorporating all relevant provisions on all such matters.”
The SSP press release argues that the main agenda of the party has always been to protect special provision under Article 371F and counters that Mr. Pilot’s interpretation is flawed and stresses “we stick on no such order shall be made after the expiry of two years from the appointed day [1975].”
It may be mentioned that the SDF party had recently claimed that the status quo on the Companies Bill, 2013, remains as far as Sikkim and its interests are concerned. It had quoted Section 1(3) of the Companies Act, 2013 as stating, “the remaining provisions of this Act shall come into force on such date as the Central Government may, by notification in the official gazette, appoint and different dates may be appointed for different provisions of this Act.”
An SSP release informs that when Mr Bhandari was the president of Sikkim Pradesh Congress Committee, he had written to Minister of State for Corporate Affairs Sachin Pilot regarding the Companies Bill 2012. In response, Mr Bhandari recently received a letter from Mr. Pilot explaining that the extension of Companies Act 2013 to Sikkim and the repeal of Registration of Companies (Sikkim) Act, 1961, did not violate Article 371F of the Constitution.
Pointing out that Article 371F provides for ‘competent’ authorities to repeal old laws, the letter states “Companies Act, 2013 is a Law enacted by the competent Legislature as contemplated by Article 371F (k) and its application to Sikkim is strictly in accordance with that provision.”
The letter further explains, “The registration of Companies Act, Sikkim, 1961 is a summary Legislation providing only such matters as incorporation and registration of Companies. It does not address matters so crucially required for smooth functioning of Companies such as raising/ maintaining Capital, borrowings power and limits. Level of accountability in the management/ administration and role of various organs therein; manner of decision making. Protection of minority share holders, corporate restructuring and winding up/ dissolution of Companies etc. The Company Act, 2013, on the other hand, is a comprehensive Legislation incorporating all relevant provisions on all such matters.”
The SSP press release argues that the main agenda of the party has always been to protect special provision under Article 371F and counters that Mr. Pilot’s interpretation is flawed and stresses “we stick on no such order shall be made after the expiry of two years from the appointed day [1975].”
It may be mentioned that the SDF party had recently claimed that the status quo on the Companies Bill, 2013, remains as far as Sikkim and its interests are concerned. It had quoted Section 1(3) of the Companies Act, 2013 as stating, “the remaining provisions of this Act shall come into force on such date as the Central Government may, by notification in the official gazette, appoint and different dates may be appointed for different provisions of this Act.”
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