The Central Government in exercise of the powers conferred by Section 435(1) of the Companies Act, 2013 and after obtaining the concurrence of the respective Chief Justices of the High Courts has established Special Courts for the purposes of trial of offences punishable with imprisonment of two years or more in terms of Section 435 of the Companies Act, 2013. Further, the Central Government has notified 18 May 2016 as the date on which the provisions pertaining to Special Courts as provided in Section 2 (29)(iv), Section 435 to Section 438 and Section 440 of the Companies Act, 2013 shall come into force.
The Special Courts are established for speedy trial of offences and this will lead to good Corporate Governance and stricter implementation of the Companies Act, 2013 for the benefit of all stakeholders. As the Court is set up exclusively for companies and would address specific offences, it could be more effective and efficient than general Session Courts.
The notifications issued by the Ministry of Corporate Affairs on 18 May 2016 in this regard are available on the link provided below. To read the aforesaid notifications, please visit the below link:
Labels: Company Law Updates