MCA through notification dated 27th July, 2016 amended the Companies (Incorporation) Rules, 2014 which now be called as Companies (Incorporation) Third Amendments Rules, 2016.
Under Rule 26 of Companies (incorporation) Rules, 2014 following substitution has been made:
“26. Publication of name by Company – (1) every company which has a website for conducting online business or otherwise, shall disclose / publish its name, address of its name, address of the registered office, the corporate identity Number, Telephone No., Fax No. if any, email and the name of the person who may be contacted in case of any queries or grievances on the landing/ home page of the said website.
Publication of name-
“Publication of name by the Company means make information available to people, especially on the website of the Company on which company conducting the its business online.”
THIS amendment is very close to Regulation 46 of SEBI (Listing Obligation and Disclosure Requirements), Regulations, 2015, according to this regulation website maintenance and information as mentioned in Regulation 46 (2) need to be published on the website of the Company, as far as this regulation is concern investors were kept at the centre point. Comparably this amendment has kept to the customers at the centre point as the prominent stakeholders of the online business. Therefore, it is very necessary to avail the proper information and grievance redressal system in every company for safe and secured online transactions irrespective of public or listed company.
Through this amendment we can reach at some points which are necessary to be kept in mind by the management of the Companies those want to do or doing the business through the online.
- Right from incorporation or from commencement of business company has to be a proper website.
- Company has to provide its Name, address of the registered office as informed to the MCA, Corporate Identification Number (CIN), Telephone No., Fax No. and Email on the website.
- Details of Person to whom may be contacted in case of any queries or grievances on the landing/ home page of the website.
- If there any changes in the above mentioned information it should be update on the website as earlier as possible.
HOW IT WILL BE BENEFITED TO THE CUSTOMERS?
It will have benefited at the time of pre-transaction and post transaction-
At the time of transaction-
- legal status can accessible through the Corporate Identification Number.
- List of Directors and Key Managerial Personnel easily available.
- Location can be easily accessible.
- In case of service issues, customers can contact directly.
- You can put queries or grievances on email id.
- Less chances of faulty and fraudulent services.
This amendment will create a reliable environment in the online business market but also beneficial to the business owners as they will get aware about the quality of services through the established grievances redressal systems in their entity.
Chandrakant Joge, M. Com, ACS