The Ministry of Corporate Affairs (“MCA”) has issued the Companies (Mediation and Conciliation) Rules, 2016 pursuant to Section 442 of the Companies Act, 2013 (“CA 2013”) on 9 September 2016 and it shall come into force on the date of their publication in the official gazette.
As per Section 442 of CA 2013, any of the parties to the proceedings may at any time during the proceedings before the regulatory authority apply to such regulatory authority for referring the matter pertaining to such proceedings to Mediation and Conciliation panel for meditation between the parties or the authority may suo motu refer any matter to the Mediation and Conciliation panel. For the effective mediation or conciliation between the parties, the above said rule has been framed by the MCA and the said rules prescribes the manner of selection of panel of mediators or conciliators, their qualification and disqualification, application for their appointment, duty of mediator or conciliators and such other information to initiate and complete the meditation or conciliation.
This Rules will enable the companies to settle the matter through a Mediation and Conciliation panel, thus leading to a speedy settlement and is also cost effective as multiple hearings can be avoided.
To read the full text of the Rule, please click the below link:
Labels: Company Law Updates