on Thursday passed the much-awaited which is aimed at protecting the interest of employees and small investors, with the government saying the "historic" measure will give impetus to growth and bring transparency.
The Companies Bill, which will replace the nearly 50-year-old Companies Act, was passed by by voice vote. Lok Sabha had given its assent in December last year. Wrapping up the debate, Corporate Affairs Minister Sachin Pilot termed the passage of the legislation a "historic feat". Main Features are below:-
·
Companies
are required to spend at least 2 per cent of their net profit on Corporate
Social Responsibility.
·
To
help in curbing a major source of corporate delinquency, introduces punishment
for falsely inducing a person to enter into any agreement with bank or
financial institution, with a view to obtaining credit facilities.
·
The
limit in respect of maximum number of companies in which a person may be
appointed as auditor has been proposed as 20.
·
Independent
directors' shall be excluded for the purpose of computing 'one third of
retiring directors'.
·
Appointment
of auditors for 5 years shall be subject to ratification by members at every
Annual General Meeting.
·
'Whole-time
director' has been included in the definition of the term 'key managerial
personnel'.
·
The
term 'private placement' has been defined to bring clarity.
·
Private
Company can have upto 15 directors which can further increased through special
resolution. Earlier the limit was upto 12 directors.
·
Financial
Year of any company can end only on March 31 and only exception is for
companies, which are holding/subsidiary of a foreign entity requiring
consolidation outside India, can have a different financial year with the
approval of Tribunal.
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