HIGHLIGHTS OF THE COMPANIES ACT 2013
(The Companies Bill, 2012, received the assent of Honorable President of India on August
29, 2013 and was notified alongwith Section 1 in the Gazette of India on August 30, 2013
as the Companies Act, 2013 (18 of 2013). So far 98 Sections have been notified.)
Definition of private company changed
- the limit on maximum number of members
increased from 50 to 200.
CORPORATE SOCIAL RESPONSIBILITY (CLAUSE 135)
Now as per Clause 135 of the Companies Act 2013, every company having net worth of
rupees 500 crore or more, or turnover of rupees 1000 crore or more or a net profit of rupees 5
crore or more during any financial year shall have to spend at least 2% of average net profit
of the company made during 3 immediately preceding financial years in pursuance of its
Corporate Social Responsibility Policy and in case of failure to do so, necessary reasons for
not spending the amount, shall be disclosed in the Director’s Report and also on its website.
The approach is to 'comply or explain'.
Such Companies shall constitute a Corporate Social Responsibility Committee of the Board
consisting of three or more directors, out of which at least one director shall be an
independent director.
The CSR Committee shall formulate and recommend Corporate Social Responsibility Policy
which shall indicate the activity or activities to be undertaken by the company as specified in
schedule VII and shall also recommend the amount of expenditure to be incurred on the CSR
activities.
The Board of every company shall ensure that the company complies with the CSR policy.
The company shall give preference to local areas where it operates, for spending amount
earmarked for Corporate Social Responsibility (CSR) activities.
INDUSTRIAL & LABOUR LAWS UPDATES
The Parliament on September 6, 2013 passed the Pension Fund Regulatory and Development
Authority (PFRDA) Bill, 2011. The Pension Bill has been hanging since 2005 when it was
first introduced in Parliament. It was reintroduced in 2011.The Bill aims for creation of a
regulator for the sector and allows at least 26 percent FDI in this sector.
Primary features of the Pension Fund Regulatory and Development Authority
(PFRDA) Bill, 2011
·
After the passage of this Bill, more citizens will be entitled for pension cover. Under the
National Pension Scheme, there would be around 35000 Crore Rupees allocated for
around 53 lakh subscribers, which include those from 26 State Governments. At present,
there is merely 12 percent of active workforce in India for social security plan or pension
plan.
·
Every subscriber under the National Pension Scheme would have a pension account and
this would be portable across all the job changes. The subscribers will have the advantage
of choosing fund managers as well as schemes for managing the pension wealth.
·
There will also be the income security plan optional for unorganized sector.
·
The bill provides subscribers a wide choice to invest their funds including for assured
returns by opting for Government Bonds as well as in other funds depending on their
capacity to take risk.
·
The Pension Fund Regulatory and Development Authority Bill 2011 will provide
statutory powers to the Pension Fund Regulatory and Development Authority (PFRDA).
PFRDA was established in August 2003 as the pension sector regulator.
·
The bill allows for 26 percent FDI in the pension funds.
·
The Bill also enables the subscribers for withdrawals from the individual pension funds,
but under a few conditions like the limits and the frequency.
TRADEMARK
Indian Trademarks law has undergone significant changes effective from July 8, 2013. Some
of the key changes are as follows:
·
India has acceded to the Madrid Protocol for the International Registration of Marks. The
development makes filing applications in India easier and cost-effective. The development
is also expected to fasten the trade marks examination and registration process in India,
which to date has been slow. Under the Madrid Protocol, India is required to examine a
registration request within 18 months. If no objections or oppositions are raised within this
period, the mark will be deemed registered in the Indian territory;
·
India will now follow the current edition of the NICE Classification for the purposes of
classification of goods and services. The development will further streamline the trade
mark filing process in India and will make it easier for applicants to deal with formalities
objections in India;
·
The term for filing an opposition against published marks has been revised to four
months (without extension) from the date of publication as opposed to the earlier term of
three months which was extendible by one month. The change is anticipated to expedite
opposition proceedings in India. Prospective opponents must, therefore, commence their
strategic research and assessment of launching opposition proceedings as soon as possible
after the advertisement of an application.
We sincerely hope that the above information will be useful to you and would feel happy to
provide you with any further clarifications on any subject in context of any legal matrix.
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