Salient features of the new company bill: - Companies are required to spend at least two percent 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. - Maximum number of directors in a private company increased from 12 to 15 which can be increased further by special resolution. - 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. *****mg*****
Posted on: Mon, 20 Jan 2014 06:25:26 +0000
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