Salient features of the new Companies Bill
By IANS | Published: 09th August 2013 08:39 AM |
* 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 a bank or financial institution to obtain credit facilities.
* The limit of the maximum number of companies in which a person may be appointed as auditor has been pegged at 20.
* Appointment of auditors for 5 years shall be subject to ratification at every Annual General Meeting.
* Independent directors to be excluded for the purpose of computing one-third of retiring directors.
* Whole-time director has been included in the definition of the term key managerial personnel.
* Maximum number of directors in a private company increased from 12 to 15 which can be further increased by a special resolution.
* The term private placement has been defined to bring clarity.
* Financial year of any company can only end on March 31. The only exception is for companies which are a holding/subsidiary of a foreign entity requiring consolidation outside India.