Following receipt of queries and suggestions from stakeholders, it has been decided to amend Rule 6 of the Companies (Meetings and Powers of Board) Rules, 2014. This will provide additional time for companies in constituting Audit Committees, and Nomination and Remuneration Committees till 31st March, 2015.

Similarly, Sub-rule (5) of Rule 3 of the Companies (Declaration and Payment of Dividend) Rules, 2014 has been amended so as to bring greater clarity in the matter.

Clarifications have also been placed on the Ministry’s website stipulating that Registers in the new format will not be required to be maintained in respect of records relating to loans/guarantee/security/ acquisition of securities prior to 1.4.2014.

The corresponding notifications and circulars are available on the Ministry’s website at www.mca.gov.in.

Corporate governance committee compliance extended to allow additional time for constituting audit and remuneration committees. The amendment extends the compliance timeline under Rule 6 to allow additional time for constituting the Audit Committee and the Nomination and Remuneration Committee. Sub rule (5) of Rule 3 of the Dividend Rules has been amended for greater clarity, and administrative clarification excludes a requirement to maintain registers in the new format for loan/guarantee/security/acquisition records created before 1.4.2014; notifications and circulars are available on the Ministry website.