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RISE OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) IN INDIA- ATMANIRBHAR BHARAT ABHIYAN 2020

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BACKGROUND The micro and small businesses in India are characterised by heterogeneity and fragmentation, and several them are informal. Much before the term, Micro, Small and Medium Enterprises (MSME) caught on and within the broad contours of the ‘export substitution’ policy paradigm, India had defined Small Scale Industry (SSI) in order to target resources towards this segment of industries, rightly considering it to be the engine of growth. An SSI in the 1950s was defined as an industry with investment of up to Rs. 5 lakh in fixed assets and employment of 50/100 people with or without power. By the 1960s, the employment criteria was dropped and the investment ceiling thereafter was constantly increased. The MSMED Act in 2006 used ‘micro and small’ instead of ‘small scale industries’ and added a definition of ‘medium’. Further, the definitions are based on the investment criteria and differentiated on the basis of manufacturing and services. DEFINITIONS MSME Definition Earlier...
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MAJOR HIGHLIGHTS OF THE COMPANIES (AMENDMENT) ACT, 2020

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The Companies (Amendment) Bill, 2020 was introduced in Lok Sabha by the Minister for Corporate Affairs, Ms. Nirmala Sitharaman, on March 17, 2020. The Bill seeks to amend the Companies Act, 2013.  It was passed by Lok Sabha on 19th September 2020 and passed further by Rajya Sabha on 22nd September 2020 and received the assent from President on 28th September, 2020 . The CAB, 2020 has been based on the Company Law Committee (“CLC/Committee”) which was set up under the Chairmanship of Shri Injeti Srinivas in September, 2019. The CLC was constituted with a view to decriminalize offences and  provide  ease  of  doing  business to  the  corporates  and other stakeholders. The Committee presented its Report 2 in November, 2019 which provided for de-clogging 46 penal provisions in the following manner: •Re-categorising   of   23   offences   out   of   66 ...
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Convening of Annual General Meeting during COVID- 19 Crisis

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BACKGROUND In view of the COVID-19 outbreak, the Ministry of Corporate Affairs (‘MCA’) had come up with the circular dated April 08, 2020 ,  providing certain relaxations from the provisions of Companies Act, 2013 and rules made thereunder including conducting the extra-ordinary general meeting for transecting the business of urgent nature through video conferencing (‘VC’) and other audio visual means (‘OAVM’) till June 30, 2020. Further, in order to provide more clarity on the modalities to be followed by the companies for conducting EGM viz. manner of issuance of notice, voting by show of hands and postal ballot etc., another circular dated April 13, 2020  (Collectively referred to as ‘EGM Circulars’) was brought in force. In continuation to the aforesaid circulars and in view of the social distancing norms and other restrictions thereof, MCA provided an extension of 3 months for holding annual general meeting (‘AGM’) for the companies having the calendar year as the financi...
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