The National Company Law Tribunal (NCLT) consolidates the corporate jurisdiction of the Company Law Board, Board for Industrial and Financial Reconstruction (BIFR), The Appellate Authority for Industrial and Financial Reconstruction (AAIFR) and the powers relating to winding up or restructuring and other provisions, vested in High Courts. Hence, the National Company Law Tribunal will consolidate all powers to govern the companies registered in India. With the establishment of the NCLT and NCLAT, the Company Law Board under the Companies Act, 1956 has now been dissolved.
Further, NCLT is the Adjudicating Authority for Insolvency and Bankruptcy Matters under Insolvency and Bankruptcy Code.
NCLT has the following powers:-
i. Initiate Insolvency Prooceeding against the Company.
ii. De-registration of Companies.
iii. Remedy of oppression and mismanagement.
iv. Power to hear grievance of refusal of companies to transfer securities and rectification of register of members.
v. Protection of the interest of various stakeholders, especially non-promoter shareholders and depositors.
vi. Power to provide relief to the investors against a large set of wrongful actions committed by the company management or other consultants and advisors who are associated with the company.
vii. Aggrieved depositors have the remedy of class actions for seeking redressal for the acts/omissions of the company which hurt their rights as depositors.
viii. Powers to direct the company to reopen its accounts or allow the company to revise its financial statement but do not permit reopening of accounts. The company can itself also approach the Tribunal through its director for revision of its financial statement.
ix. Power to investigate or for initiating investigation proceedings. An investigation can be conducted even abroad. Provisions are provided to assist investigation agencies and courts of other countries with respect to investigation proceedings.
x. Power to investigate into the ownership of the company.
xi. Power to freeze assets of the company.
xii. Power to impose restriction on any securities of the company.
xiii. Conversion of public limited company into private limited company.
xiv. If the company cannot or has not held an Annual General Meeting as required under the Companies Act or a required Extraordinary General Meeting, then the Tribunal has powers to call for a General Meetings.