The Ministry of Corporate Affairs has issued a circular no. 32/2014, dated 23.07.2014 with respect to provide clarification on the transitional period of the resolutions passed under CA 2013, which says that many companies have passed the resolutions which were at different stages of implementation after coming into force of the Companies Act, 2013 (New Act).
The ministry has examined the case in details and has clarified the matter in the light of similar issues, It is hereby 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 that the implementation of the resolution actually commenced before 1st April, 2014 and (b) that this transitional arrangement will be available upto expiry of one year from the passing of the resolution or six months from the commencement of the corresponding provision in New Act whichever is later. It is also clarified that any amendment of the resolution must be in accordance with the relevant provision of the New Act.
