[sbinews] SICA REPEALED
- From: sbistcbangalore@xxxxxxxx
- To: sbinews@xxxxxxxxxxxxx
- Date: Sat, 13 Dec 2003 08:02:43 +0500
Lok Sabha clears Sick Cos Repeal Bill
TIMES NEWS NETWORK[ FRIDAY, DECEMBER 12, 2003 08:05:02 AM ]
NEW DELHI : The Lok Sabha on Thursday passed the Sick Industrial Companies
(Special Provisions) Repeal Bill, ’03, paving the way for the government to
implement the amendments to the Companies Act, 1956, pertaining to insolvency
of companies, that had been cleared by the Parliament during the ’02 winter
session.
The repeal of the Act will result in the scrapping of the Board for Industrial
and Financial Reconstruction and the Appellate Authority for Industrial and
Financial Reconstruction (AAIFR), and in the creation of National Company Law
Tribunal and National Company Law Appellate Tribunal as envisaged in the
Companies (Second Amendment) Bill ’02.
The department of company affairs (DCA) has already set up a search panel to
identify the members to be nominated to the tribunal. The NCLT is to be set up
with a maximum of 62 members and a president, who is qualified to be a judge.
The NCLT will subsume the jurisdiction of the Company Law Board and the BIFR.
The jurisdiction of High Courts to approve mergers and acquisitions of
companies would also be transferred to the new tribunal. The NCLT shall
comprise of judicial and technical members.
Replying to a debate on the SICA Repeal Bill, finance minister Jaswant Singh
said that the move would help in the expeditious rehabilitation of sick
companies, which was not possible under the BIFR regime.
Cases pending with the BIFR were those where 100% net worth of the companies
had eroded, Mr Singh said, adding that under the Companies Act, companies with
erosion of 50% of its net worth would automatically be referred to the
Tribunal.
The company concerned and its board of directors would then have to furnish
information and the scheme for rehabilitation.
The minister informed the House that the Companies Act has special provisions
to protect workers interests.
***************************************************************************
Mailing list (sbinews@xxxxxxxxxxxxx) related information:
News/articles about SBI and Banking related matters published in the print
media, Internet etc will be circulated through this Mailing List.
The messages in this list will help in improving awareness of SBI and its
activities vis-a-vis the happenings in the Banking industry. This should be of
help to all staff members of SBI, particularly those who are preparing for
promotional written tests/interviews/group discussions. Subscription to this
Mailing List is simple and FREE. Please check the procedure below. Please share
this information with other colleagues/branches that could be interested in
subscribing to this Mailing List.
The messages circulated here should not be deemed to have the official
endorsement of the SBI or any of its employees. The correct factual position
may be ascertained from official sources.
To join this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx
with the word 'subscribe' without the quotes in the subject of the email
message.
To leave this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx
with the word 'unsubscribe' without the quotes in the subject of the email
message.
Archives (old messages) are available for viewing at:
//www.freelists.org/archives/sbinews
Click on the month-year at the lower left corner to view messages posted during
that month.
This is an announcements/newsletter type mailing list i.e. only the Moderator/s
can post messages to the list.
This mailing list is maintained by Sri. R.S.Pai, currently working as Chief
Manager(IT-Internet Banking), SBI, Corporate Centre, Mumbai.
Moderator: Smt. S. Vijaya, CM (Training), SBI, STC, Bangalore.
Visit http://rspai.tripod.com for some useful Banking, Reference and Utilities
Links
Other related posts:
- » [sbinews] SICA REPEALED
