Delegation of Powers by the Central Government to Regional Directors

The Ministry of Corporate Affairs (MCA) vide its notification dated 6th September, 2017 has delegated the powers and functions vested under section 66 of the Companies Act, 2013 to the Regional Directors at Mumbai, Kolkata, Chennai, New Delhi, Ahmedabad, Hyderabad and Shillong respectively.

Section 66(2) pertaining to Reduction of Share Capital reads as follows:

The Tribunal shall give notice of every application made to it under sub-section (1) to the Central Government, Registrar and to the Securities and Exchange Board, in the case of listed companies, and the creditors of the company and shall take into consideration the representations, if any, made to it by that Government, Registrar, the Securities and Exchange Board and the creditors within a period of three months from the date of receipt of the notice.

Impact of the notification dated 6th September, 2017:
The Central Government, in exercise of its powers under section 458 of the Companies Act, 2013, has delegated to the Regional Directors at Mumbai, Kolkata, Chennai, New Delhi, Ahmedabad, Hyderabad and Shillong, the powers and functions vested in it under subsection (2) of section 66 of the said Act.

However, Central Government may revoke such delegation of powers or may itself exercise the powers under the said sub-section, if in its opinion such a course of action is necessary in the public interest.


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