General Circular No. 32/2014 : Clarification on transitional period for resolutions passed Under the Companies Act, 1956.

Government has observed that many companies have passed resolutions during FY 2013-14 under the Old Act (1956) which are/were at different stages of implementation after coming into force of corresponding provisions of the New Act (2013). MCA has received suggestions that while Section 6 of the General Clauses Act, 1897 protects the validity of such resolutions, it will be advisable if a suitable communication is also issued in the matter by the Ministry by way of abundant caution.

It is clarified that resolutions approved or passed by companies under relevant applicable provisions of the Old Act during the period from 1st September, 2013 to 31st March, 2014, can be implemented, in accordance with provisions of the Old Act, notwithstanding the repeal of the relevant provision subject to the conditions:

(a) that the implementation of the resolution actually commenced before 1st April, 2014 and

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