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    The Companies Amendment Bill,2016[Bill 73 Of 2016]- A Review Part-1

    The provisions of the Companies Act, 2013, came in to force with effect from 12.09.2013, and out of the 470 sections, 282 sections are in force, mostly effectivefrom 01.04.2014. The rest of the sections are still to be notified.

     

    With in a period of 15 months of the commencement, on the pretext of ease of doing business in India, and to overcome some practical difficulties as to implementation of the provisions,some amendments were proposed to the Companies Act, 2013, and accordingly, the Companies Amendment Act, 2015, came in to force, and 29.05.2015 was the appointed date for coming in to force of the Sections 1 to 12, 15 to 23, and 14.12.2015, as the commencement date for Section 13 and 14 of the said Amendment Act.

     

    Even after the above amendment, there were lot of provisions which required amendments/relaxations, and accordingly the Ministry had come with 4 notifications Dt:05.06.2015, giving exemptions/relaxation from the applicability of various provisions of the Act to Government Companies, Private Companies, Section 8 Companies and Nidhi Companies.

     

    To sort out any further difficulties, the Ministry had constituted a Corporate Law Committee, to obtain opinion from the various sections in the industry and recommend amendments to the Act. The Committee submitted its report on 01.02.2016.

     

    Based on the recommendation of the Corporate Laws Committee, the Ministry had come up with an Amendment Bill with nearly 86 amendments , and the said bill was introduced in the Loksabha on 16.03.2016. The bill was referred to the parliamentary standing committee on 12.04.2016. The committee is to submit its report with in a period of 3 months.

     

     

     

     

     

     

     

     

     

     

     

     

    Sl.

    Section(s) under the CA,

    Clause No. in the

     

    Proposed amendment relating to

    Remarks/Comments/penalty

     

     

     

    2013, amended/Altered

     

     

     

     

    No.

    Amendment bill

     

     

     

     

    /Inserted

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Amendment to Section 2

     

    (6)-Associate Company- Inclusion of an explanation to the

    Amendment/inclusion

    to

     

     

     

    (6), (28), (30), (41), (46),

     

     

     

    1.

    2

    definitions of associate company, to include the basis of

    remove ambiguity.

     

     

     

     

    (49), (51), (57), (71), (76),

     

     

     

     

    control for joint venture.

     

     

     

     

     

     

    (85), (87), (91)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (6)-Associate Company- Inclusion of an explanation to the

    Amendment/inclusion

    to

     

     

     

     

     

    definitions of associate company, to include the basis of

    remove ambiguity.

     

     

     

     

     

     

     

    control for joint venture.

     

     

     

     

     

     

     

     

    (30)-Debentures- Inclusion of proviso to the debentures

    Exemption  proposed  to

    be

     

     

     

     

     

    definition,  so  as  not  to  term  certain  instruments  as

    given to some companies

     

     

     

     

     

     

    debentures, i.e., instruments under CH-III-D of the RBI act,

     

     

     

     

     

     

     

     

    and other instruments as may be prescribed by the CG in

     

     

     

     

     

     

     

     

    consultation with RBI.

     

     

     

     

     

     

     

     

    (41)- Financial Year- inclusion of the word associate company

    Amendment/inclusion

    to

     

     

     

     

     

    in the proviso to the financial year definition to make an

    remove ambiguity.

     

     

     

     

     

     

     

    application to the Tribunal to follow different financial year,

     

     

     

     

     

     

     

     

    than of the other associate company/holding/subsidiary

     

     

     

     

     

     

     

     

    company, for the sake of consolidation of a/cs

     

     

     

     

     

     

     

     

    (46)- Holding Company - inclusion of a proviso stating that for

    Amendment/inclusion

    to

     

     

     

     

     

    this clause, “Company” includes any Body Corporate.

    remove ambiguity.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (47) – The definition interested director omitted

     

     

     

     

     

     

     

     

    (51)-KMP- inclusion of clause expanding the scope of officers

    Expanding  the

    scope

    of

     

     

     

     

     

    under the definition of key managerial personnel, (Officers

    applicability,  for

    ease

    of

     

     

     

     

     

    under full time employment, not more than 1 level below the

    operations and also to fix up

     

     

     

     

     

    directors, and designated as KMP by the Board.)

    responsibilities.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Sl.

    Section(s) under the CA,

    Clause No. in the

    Proposed amendment relating to

    Remarks/Comments/penalty

     

     

     

    2013, amended/Altered

     

     

     

    No.

    Amendment bill

     

     

     

    /Inserted

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (57)-Networth-inclusion to the definition of net worth, so as

    Amendment/inclusion

    to

     

     

     

     

     

    to include the debit and credit balances of P&L account.

    remove ambiguity.

     

     

     

     

     

     

    (71) – Public Company - punctuation correction to the

    Amendment/inclusion

    to

     

     

     

     

     

    definition of Public Company.

    remove ambiguity.

     

     

     

     

     

     

    (76)-related party – expanding the scope of related party

    Expanding

    the

    scope

    of

     

     

     

     

     

    under the head “body corporate”, an investing company or

    applicability

     

     

     

     

     

     

     

     

     

    the venturer of the company.

     

     

     

     

     

     

     

     

     

     

    (85)-Small Company- The maximum prescribed limit of paid-

    Expanding

    the

    scope

    of

     

     

     

     

     

    up capital stands increased from Rs. 5 crores to Rs.10 Crores.

    applicability. Cushion to Govt to

     

     

     

     

     

     

    prescribe the limit upto Rs. 10

     

     

     

     

     

    Change in the wordings as to the P&L account requirement.

    crores.

     

     

     

     

     

     

     

     

     

    i.e., “last P&L account” to “P&L of immediately preceding FY”

     

     

     

     

     

     

     

     

     

     

    The turnover to be prescribed by the govt, is proposed to be

    Amendment/inclusion

    to

     

     

     

     

     

    increased from 20 crores to 100 crores.

    remove ambiguity. Expanding

     

     

     

     

     

     

    the  scope

    of

    applicability.

     

     

     

     

     

     

    Cushion to Govt to prescribe

     

     

     

     

     

     

    the turnover limit upto Rs. 100

     

     

     

     

     

     

    crores.

     

     

     

     

     

     

     

     

     

    (87)- subsidiary company- amendment to alter the holding of

    Amendment

    as

     

    to  basis

    of

     

     

     

     

     

    more than 51 % in the “voting power” rather than “total share

    s u b s i d i a r y,

    f r o m  a s

    a

     

     

     

     

     

    capital”.

    percentage of share capital to

     

     

     

     

     

     

    “voting power”

     

     

     

     

     

     

     

     

     

     

     

     

     

    Sl.

    Section(s) under the CA,

    Clause No. in the

    Proposed amendment relating to

    Remarks/Comments/penalty

     

     

    2013, amended/Altered

     

     

    No.

    Amendment bill

     

     

    /Inserted

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    To omit the proviso to the definition. Proviso not notified till

     

     

     

     

     

     

    now.

     

     

     

     

     

     

    To omit explanation (d) regarding “Layer”.

     

     

     

     

     

     

    (91)-turnover- a new definition substituting the existing

    Amendment/inclusion  to

     

     

     

     

     

    definition.

    remove ambiguity of the earlier

     

     

     

     

     

     

    turnover definition.

     

     

     

     

     

     

     

     

     

    2.

    Amendment to section 3.

    3

    A new Section 3(A) is proposed in connection with, if the

    New provision to fix liability on

     

     

     

     

     

    minimum number of members are reduced in a Public

    the members of for the debts by

     

     

     

     

     

    Company/Private Company to what is prescribed under the

    non-complying companies.

     

     

     

     

     

    Act i.e., 7 & 2 respectively, and the company carries on the

     

     

     

     

     

     

    business for a period of more than 6 months, then for the

     

     

     

     

     

     

    debts for the said period, the said members shall be severally

     

     

     

     

     

     

    liable and they may be sued severally.

     

     

     

     

     

     

     

     

     

     

    3.

    Amendment to Section 4

    4

    Amendment of Section 4(1)(c) to allow companies an

    Welcome amendment.

     

     

     

    (Memorandum)

     

    unrestricted object clause, to engage in any lawful act or

     

     

     

     

     

     

    activity, rather than fixed objects.

     

     

     

     

     

     

    Amendment to Section 4(5) as to the validity of the name

    The same is not welcome, as

     

     

     

     

     

    from 60 days to 20 days, from the date of allotment

    the period is too short.

     

     

     

     

     

    Insertion of new sub-sections (6A) and (6B) regarding the

    Will  result  in  creation  of

     

     

     

     

     

    model Memorandum of Association.

    u n i f o r m i t y  i n  t h e

     

     

     

     

     

     

    documentation.

     

     

     

     

     

     

     

     

     

     

    Sl.

    Section(s) under the CA,

    Clause No. in the

    Proposed amendment relating to

    Remarks/Comments/penalty

     

     

     

    2013, amended/Altered

     

     

     

    No.

    Amendment bill

     

     

     

    /Inserted

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    4.

    Amendment to Section 7-

    5

    Amendment to Section 7(1)(c) in connection with the

    Will result in simplification of

     

     

     

    Incorporation of Company

    requirement for incorporation of a company. To replace the

    the incorporation process.

     

     

     

     

     

     

     

     

     

     

     

    obtaining of affidavit from subscribers and directors and to

     

     

     

     

     

     

     

    replace the same with declarations from them with reference

     

     

     

     

     

     

     

    to incorporation of company.

     

     

     

     

     

     

     

     

     

     

     

    5.

    Section 12-

    6

    Amendment of Section 12 (1) as to requirement of having

    W e l c o m e  a m e n d m e n t

     

     

     

    Registered office

    Registered  office  by  a  company  within  30  days  of

    increasing the time lines for

     

     

     

     

     

     

     

     

     

    incorporation from the present 15 days.

    intimation to ROC.

     

     

     

     

     

     

    Amendment of Section 12 (4) as to increase of time frame

     

     

     

     

     

     

     

    within which the change in registered office to be intimated to

     

     

     

     

     

     

     

    ROC, increased from 15 days to 30 days.

     

     

     

     

     

     

     

     

     

     

     

     

    6.

    Section 21-Authentication

    7

    Amendment to include even an employee of the company to

    W i l l  r e s u l t  i n  e a s e

    o f

     

     

     

    of documents

    authenticate the documents for and on behalf of the Board, in

    operations.

     

     

     

     

     

     

     

     

     

     

     

     

    addition to KMP and other officer.

     

     

     

     

     

     

     

     

     

     

     

     

    7.

    Section – 26 – Matters to

    8

    Omission of sub-clauses (a) & (b) of Section 26(1), and

    Probably  simplification

    of

     

     

     

    be disclosed in prospectus

     

    inclusion of new clause in its place, in connection with the

    information/Data.

     

     

     

     

     

     

    contents of the prospectus with respect to information and

     

     

     

     

     

     

     

    reports on financial information. Post the amendment, the

     

     

     

     

     

     

     

    information shall be in such manner, as specified by SEBI in

     

     

     

     

     

     

     

    consultation with Central Government.

     

     

     

     

     

     

     

    Further,  amendment  also  provides  that  till  the  new

     

     

     

     

     

     

     

    requirements are specified by SEBI, the existing requirements

     

     

     

     

     

     

     

    as per SEBI act, shall apply.

     

     

     

     

     

     

     

     

     

     

     

     

     

    Sl.

    Section(s) under the CA,

    Clause No. in the

     

    Proposed amendment relating to

    Remarks/Comments/penalty

     

     

    2013, amended/Altered

     

     

     

    No.

    Amendment bill

     

     

     

    /Inserted

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    8.

    Section 35- Civil Liability

    9

     

    New Clause- Insertion to include a sub-clause to hold experts

    Burden on professionals to be

     

     

     

    liable for their statements made by them forming part of the

    more  cautious  while  giving

     

     

     

    for  mis-statement  in

     

     

     

     

     

     

    prospectus, and to provide immunity to Directors from

    statements  /certifications  in

     

     

     

    prospectus.

     

     

     

     

     

     

    liability, as the directors had relied on the statements made

    prospectus.

     

     

     

     

     

    by the experts, and do not result in misstatement by director

     

     

     

     

     

     

    himself.

     

     

     

     

     

     

     

     

     

     

     

     

    9.

    Section  42  –  Private

    10

     

    Replacement with new section

     

     

     

     

     

     

     

     

     

    Placement

     

     

     

     

     

     

     

     

     

    Offer letter to be issued to selected persons, not exceeding 50

     

     

     

     

     

     

     

    Compliance will become very

     

     

     

     

     

    or such high number as may be prescribed, in a financial year,

    complicated.

     

     

     

     

     

    whose names are to be recorded by the Board.

     

     

     

     

     

     

    Private placement offer does not carry renunciation right.

     

     

     

     

     

     

    Offer to more than the prescribed number will amount to

     

     

     

     

     

     

    public offer and compliance of section 23 is to be done.

     

     

     

     

     

     

    Amounts to be received through Cheque/DD or other normal

     

     

     

     

     

     

    Banking channels.

     

     

     

     

     

     

    Allotment to be done within 60 days from the receipt of

     

     

     

     

     

     

    money, and filing to be completed with in 15 days of allotment

     

     

     

     

     

     

    and only after that monies can be used.

     

     

     

     

     

     

    If return not filed with ROC with 15 days, then the Company,

     

     

     

     

     

     

    the promoters, Directors shall be liable for penalty of

     

     

     

     

     

     

    Rs.2,000/- for each day, during which the default continues

     

     

     

     

     

     

    but not exceeding Rs.25,00,000/-, for each default.

     

     

     

     

     

     

     

     

     

     

     

     

    Sl.

    Section(s) under the CA,

    Clause No. in the

    Proposed amendment relating to

    Remarks/Comments/penalty

     

     

    2013, amended/Altered

     

     

    No.

    Amendment bill

     

     

    /Inserted

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    If, allotment not in compliance with the provisions, then the

     

     

     

     

     

     

     

     

    Company, the promoters, Directors shall be liable for penalty

     

     

     

     

     

     

     

     

    of equalling to amounts raised or Rs.2 Crores which ever is

     

     

     

     

     

     

     

     

    lower. Company to refund the amounts with in 30 days of the

     

     

     

     

     

     

     

     

    order imposing the penalty.

     

     

     

     

     

     

     

     

    Any offer not made in compliance with the provisions of the

     

     

     

     

     

     

     

     

    Section shall be deemed to be public offer and all the

     

     

     

     

     

     

     

     

    provisions of SCRA & SEBI Act, shall be applicable.

     

     

     

     

     

     

     

     

     

     

     

     

    10.

    Section  -  47  –  Voting

    11

    Amendment  as  to  inclusion  of  section  188(1),  in  the

    Amendment/inclusion to

     

     

     

    Rights

     

    restriction of voting rights, in addition to the existing Section

    remove ambiguity.

     

     

     

     

     

    43 and Section 50.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    11.

    Section  - 53 – Issue of

    12

    Amendment of a grammatical error.

     

     

     

     

     

     

    Shares at Discount

     

    Insertion of a new Sub-section 2(A) permitting issue of shares at a

    Welcome amendment.

     

     

     

     

     

     

     

     

     

     

    discount to creditors pursuant to settlement/restructuring scheme

     

     

     

     

     

     

     

     

    under directions/regulations specified by RBI under RBI Act or the

     

     

     

     

     

     

     

     

    Banking regulation Act.

     

     

     

     

     

     

     

     

     

     

     

     

    12.

    Section – 54 – Issue of

    13

    Deletion of Section 54 (1) (c), the requirement being  the

    W e l c o m e  a m e n d m e n t ,

     

     

     

    Sweat Equity Shares

    company  could  issue  sweat  equity  shares  only  after

    relaxing

    the period, thereby

     

     

     

     

     

     

     

     

     

    completion of 1 year from the date the company was eligible

    allowing

    the

    companies  to

     

     

     

     

     

    to commence business

    issue  sweat

    equity  shares,

     

     

     

     

     

     

    without

    any

    limitation  of

     

     

     

     

     

     

    period.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Sl.

    Section(s) under the CA,

    Clause No. in the

    Proposed amendment relating to

    Remarks/Comments/penalty

     

     

    2013, amended/Altered

     

     

    No.

    Amendment bill

     

     

    /Inserted

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    13.

    Section – 62 – Further

    14

    Section 62(1) (c), is proposed to be amended to include the

    Welcome amendment.

     

     

     

    issue of Share Capital

     

    compliance of the Chapter III i.e., Section 42 and such other

     

     

     

     

     

     

    conditions as may be prescribed.

     

     

     

     

     

     

    Insertion as to the mode of dispatch ofRights issue offer letter.

     

     

     

     

     

     

    “Courier or any other mode having proof of delivery”, is

     

     

     

     

     

     

    proposed to be included.

     

     

     

     

     

     

     

     

     

     

    14.

    Section 73 - Deposits

    15

    Amendment to increase the amounts to be deposited in the

    Welcome amendment in the

     

     

     

     

     

     

     

     

     

    deposit repayment reserve account, from 15 % to 20 % of the

    interest of the depositors.

     

     

     

     

     

    deposits  maturing  during  the  following  financial  year.

     

     

     

     

     

     

    Amount to be deposited on or before 30 of April each year.

     

     

     

     

     

     

    Omission as to requirement of deposit insurance.

     

     

     

     

     

     

    Amendment of one of the condition to accept deposits, as to

     

     

     

     

     

     

    stricter certification from the company side that it has not

     

     

     

     

     

     

    committed any default in repayment of deposits and where

     

     

     

     

     

     

    defaults have taken place, the company has made good the

     

     

     

     

     

     

    default, and a period of 5 years has lapsed since the date of

     

     

     

     

     

     

    making good the default.

     

     

     

     

     

     

     

     

     

     

    15

    Section 74- Repayment of

     

    Amendment as to the term of repayment of deposits

    Relief to some companies, who

     

     

     

    Deposits accepted before

    16

    accepted under the old act, from 1 year to 3 years of the

    had obtained deposits under

     

     

     

    commencement  of  the

     

    commencement of the new act or on or before expiry of the

    the old act.

     

     

     

    Act

     

    period for which the deposits were accepted, whichever is

     

     

     

     

     

     

     

     

     

     

     

     

    earlier.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Sl.

    Section(s) under the CA,

    Clause No. in the

    Proposed amendment relating to

    Remarks/Comments/penalty

     

     

    2013, amended/Altered

     

     

    No.

    Amendment bill

     

     

    /Inserted

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    16.

    S e c t i o n

    7 6  A

    -

    17

    Amendment as to the increase of the minimum fine on the

    Welcome amendment in the

     

     

     

    Punishment

     

     

     

     

    company for non-compliance of the deposit rules either at

    interest of the depositors.

     

     

     

    for contravention

     

     

    the time of taking the deposit or its repayment, then the

     

     

     

     

    of section 73 or

     

     

    minimum fine shall be Rs. 1 Crore or two times of the deposit

     

     

     

     

    section 76.

     

     

     

     

    accepted, whichever is lower, and the maximum fee Rs.10

     

     

     

     

     

     

     

     

     

    Crores.

     

     

     

     

     

     

     

     

     

     

     

     

     

    17.

    Section 77

    Duty

    to

    18

    Insertion of a new proviso after the existing 3rd proviso to

    Welcome amendment.

     

     

     

    Register Charges

     

    Section 77 (1), providing non-applicability of the section for

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    some charges, as may be prescribed in consultation with RBI.

     

     

     

     

     

     

     

     

     

     

     

     

    18.

    S e c t i o n

    7 8

    19

    Amendment of the section in line with Section 77, to include

    No comment

     

     

     

    A p p l i c a t i o n  f o r

     

    the period of filing of 30 days.

     

     

     

     

    registration of Charge

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    19.

    S e c t i o n

    8 2

    20

    Amendment to provide time lines for filing of satisfaction of

    W e l c o m e  a m e n d m e n t ,

     

     

     

    Satisfaction of Charge

    Charge by the Company or Charge holder with in a period of

    because,  now,  we  need  to

     

     

     

     

     

     

     

     

     

     

     

     

    300 days of satisfaction of the charge, and upon payment of

    approach for condonation if

     

     

     

     

     

     

     

     

    additional fees, as may be prescribed.

    delayed more than 30 days.

     

     

     

     

     

     

     

     

     

    20.

    Section 89 – Beneficial

    21

    Insertion of a new Sub-section (10), to section 89 which

    Welcome amendment defining

     

     

     

    interest

     

     

     

    defines the term “beneficial interest” for the purposes of

    the term, thereby making it

     

     

     

     

     

     

     

     

    Section 89 and Section 90.

    more clear.

     

     

     

     

     

     

     

     

     

     

     

    21.

    S e c t i o n

    9 0

     

    The existing Section 90 to be substituted with a new section

    Welcome amendment in order to

     

     

     

    I n v e s t i g a t i o n

    o f

    22

    and in a much more detailed way detailing who has to give

    have a control as to who are the

     

     

     

    beneficial ownership of

     

    notice of having beneficial ownership and who is not

    real owners of the company, and

     

     

     

    shares in certain cases.

     

    required,  maintenance of register and other incidental

    who are acting/representing them

     

     

     

     

     

     

     

     

    matters, and the heading of the Section  to be renamed as

    in disguise and the reason for the

     

     

     

     

     

     

     

     

    “Register of significant beneficial owners in a company”.

    same.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Sl.

    Section(s) under the CA,

    Clause No. in the

     

    Proposed amendment relating to

    Remarks/Comments/penalty

     

     

    2013, amended/Altered

     

     

     

    No.

    Amendment bill

     

     

     

    /Inserted

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    22.

    Section  92  –  Annual

    23

     

    Omission of provisions relating to

    Welcome amendment, since, it

     

     

     

    Return

     

     

     

     

    will  reduce

    the  time  of

     

     

     

     

     

     

    (i) information as to indebtedness of the company.

    p r e p a r i n g

    d u p l i c a t e

     

     

     

     

     

    (ii) Names, address and other details of the FII.

    documents.

     

     

     

     

     

     

     

     

     

     

     

     

     

    CG to prescribe Abridged form of Annual Return to OPC and

     

     

     

     

     

     

     

    small company.

     

     

     

     

     

     

     

    Annual Return need not be part of the Board Report, but the

     

     

     

     

     

     

     

    same shall be placed in the website of the company, if any, and

     

     

     

     

     

     

     

    a web-link to be provided in the Board’s Report.

     

     

     

     

     

     

     

     

     

     

     

     

     

    23.

    Section 93 – Filing of

    24

     

    The section is proposed to be omitted, and accordingly, the

    Welcome change. Because the

     

     

     

    return with ROC in case

     

     

    requirement of filing MGT-10, by a listed company, whenever,

    company any how files return

     

     

     

    of change in promoters

     

    there is  increase or decrease of 2 % or more in the

    to Stock Exchanges.

     

     

     

    stake

     

    shareholding position of promoters and top ten shareholders

     

     

     

     

     

     

    of the company in each case, will no longer be required.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    24.

    Section 94

    25

     

    Omission of the requirement that prior intimation/service of

    Welcome amendment in the

     

     

     

     

     

    the Special resolution to keep the registers or copies of return

    interest of company operations

     

     

     

     

     

    is to be given.

    and ease of doing business.

     

     

     

     

     

    Insertion of a proviso that Government may prescribe that

     

     

     

     

     

     

     

    certain registers, index, return shall not be available for

     

     

     

     

     

     

     

    inspection or copies of the same can be obtained.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Sl.

    Section(s) under the CA,

    Clause No. in the

    Proposed amendment relating to

    Remarks/Comments/penalty

     

     

    2013, amended/Altered

     

     

    No.

    Amendment bill

     

     

    /Inserted

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    25.

    Section  96

    –  Annual

    26

    Insertion of proviso enabling unlisted companies to hold their

    Welcome amendment.

     

     

     

    General Meeting

     

    AGM any place in India, subject to consent in writing or

     

     

     

     

     

     

     

     

    through electronic mode from all the members in advance.

     

     

     

     

     

     

     

     

     

     

    26.

    Section 100 – Calling of

    27

    Pursuant  to  rule  18  of  Companies  (Management  and

    Welcome amendment in view

     

     

     

    Extra-Ordinary General

     

    Administration Rules), 2014, EGM of a company can be held

    of  the  practical  difficulties

     

     

     

    Meetings

     

     

     

    only India.

    faced by the companies.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    The proposed amendment provides that EGM of a Company

     

     

     

     

     

     

     

     

    other than a WOS of a company incorporated out side India,

     

     

     

     

     

     

     

     

    shall be held in India i.e., EGM of WOS of a company

     

     

     

     

     

     

     

     

    incorporated out side India, can take place outside India.

     

     

     

     

     

     

     

     

     

     

    27.

    Section 101 – Notice of

    28

    Insertion of a proviso relating to hold of AGM & EGM at

    Removal of ambiguity as in the

     

     

     

    meeting

     

     

     

    shorter  Notice  after  obtaining  consent  from  95  %

    principal  act,  there  was  no

     

     

     

     

     

     

     

    shareholders, entitled to vote at the meeting in case of

    mention as to AGM or EGM, but

     

     

     

     

     

     

     

    company having capital and in case of no share capital then

    only as GM

     

     

     

     

     

     

     

    with the consent of the members holding not less than 95 % of

     

     

     

     

     

     

     

     

    the voting power.

     

     

     

     

     

     

     

     

     

     

     

    28.

    Section  110-

    Postal

    29

    Insertion of a Proviso to Section 110 (1) to conduct the

    Welcome amendment.  It will

     

     

     

    Ballot

     

     

     

    meeting in the form of a general meeting and not by postal

    reduce  the  expenditure  and

     

     

     

     

     

     

     

    ballot, and pass the resolutions through electronic voting.

    waste of stationery.

     

     

     

     

     

     

     

     

     

     

    29.

    S e c t i o n

    1 1 7  –

    30

    Amendment (reduction) of the minimum penalty for non

    Welcome amendment.

     

     

     

    R e s o l u t i o n s

    a n d

     

    filing of resolutions with ROC:

     

     

     

     

    agreements to be filed

     

    On the company: from Rs.5 Lakhs to Rs.1 Lakh

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Every Officer: From Rs.1 Lakh to Rs.50,000/-.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Sl.

    Section(s) under the CA,

    Clause No. in the

    Proposed amendment relating to

    Remarks/Comments/penalty

     

    2013, amended/Altered

    No.

    Amendment bill

    /Inserted

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    The requirement of filing of various resolutions that are

    Reduction in filings.

     

     

     

     

    required to be done have been omitted, except for voluntary

     

     

     

     

     

    winding up petition and resolutions passed under Section

     

     

     

     

     

    179(3) (which any how is not applicable to private companies

     

     

     

     

     

    pursuant to the exemption notification Dt:05.06.2015)

     

     

     

     

     

    Insertion of a proviso that the clause shall not be apply to a

     

     

     

     

     

    resolution passed by Banking company for grant of loans or

     

     

     

     

     

    providing security, in its ordinary course of business.

     

     

     

     

     

     

     

     

    Note:

     

    1 Lakh = 100,000; 10 Lakhs = 1 Million; 1 Crore = 10 Millin; 10 Crore = 100 Million; 100 Crore = 1 Billion

     

    Since there are many amendments proposed , due to paucity of space, we will bring up other amendements in the subsequent bulletins.

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