Key Highlights of the Companies Amendment Bill 2017

Key Highlights of the Companies Amendment Bill 2017

Key Highlights of the Companies Amendment Bill 2017

  • For incorporation of a company, a declaration will be required instead of affidavits.
  • Name reservation in case of a 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 of the unlisted company can be held anywhere in India.
  • Every company shall have a registered office within 30 days of incorporation instead of the 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 given.
  • Sweat equity shares can be issued at any time. Currently, it can be issued after one 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 government approval is required for payment of remuneration more than 11% of net profit.
  • Money received under the private placement shall not be utilized unless the return of allotment is filled with the ROC.

Key Highlights of the Companies Amendment Bill 2017

  • The central government can provide any other number to be treated as DIN-like Aadhar or Pan.
  • Where a director incur any of disqualification u/s 164(2) due to the default of filing of the financial statement or annual return or repayment of deposit or pay interest or other mentioned in section, then he shall leave office of the director in all the companies other than the company which is in default.
  • Requirememt of filing of form DIR 11 (Filing of a copy of resignation to ROC by director itself) made optional.
  • Elegibilty for doing CSR to be determined based on preceding “Financial Year” instead of “three preceding Financial year”;
  • The requirement related to annual ratification of the appointment of the auditor by members is omitted.
  • CG will prescribe an abridged Board Report for One Person Company and small company.
  • The disclosure which has been provided in the financial statement shall not be required to be reproduced in the Board Report again.
  • Disclosure by promotes and top ten shareholders with respect to 2% change in shareholding in a listed company is omitted.
  • In case of delay in filing documents, fact or information required to be submitted u/s 92 (Annual Return) or 137 (copy of financial statement), after the expiry of the prescribed period an additional flat fee of Rs. 100 per day shall be paid instead of slab wise additional fee.
  • For calculation of net worth of the company debit or credit balance of profit and loss account shall be included.

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