Company Law – Companies Amendment Bill 2017
What is Companies Amendment Bill, 2017?
The Companies (Amendment) Bill, 2017 which seeks to bring about major changes in the Companies Act, 2013. It seeks to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve ease of doing business in the country.
Some of the key amendments introduced in Companies Amendment Bill, 2017 are:
- For Incorporation of the Company, the declaration will be required instead of affidavits.
- Name reservation in case of New Company shall be valid for 20 days from the date of approval instead of 60 days from the date of application.
- Annual General Meeting (AGM) of the Unlisted company can be held anywhere in India.
- Every company shall have registered office within 30 days of incorporation instead of a current requirement to have a registered office within 15 days.
- Notice of every change of situation of the registered office shall be given to ROC within 30 days instead of 15 days as currently provided.
- Sweat equity shares can be issued at any time currently it can be issued after 1 year from the commencement of business.
- In addition to Directors & KMP, any employee of the company can also authenticate company documents as authorized.
- Wholly owned subsidiary (WOS) of a company incorporated outside of India is now allowed to hold EGM outside India.
- No Central Govt. approval required for payment of remuneration in excess of 11% of Net Profit.
- Central Govt. can provide any other number to be treated as DIN-like Aadhar or PAN.
- The requirement of filing of Form DIR 11 (Filing of a copy of resignation to ROC by director itself) has been made optional.
- Eligibility of doing CSR to be determined based on preceding “Financial Year” instead of “3 preceding Financial Year”.
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- The requirement related to annual ratification of the appointment of an auditor by members is omitted.
- For calculation of Net Worth of the company, debit or credit balance of profit and loss account shall be included.
- Disclosures which have been provided in the financial statement shall not be required to be reproduced in the Board Report again.
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