Thursday, 3 April 2014

IMMEDIATE/IMPORTANT CHANGES W.R.T COMPANIES ACT, 2013

The following details are required to be printed in all business letters, bill heads, letter
papers and all notices and other official publications:
a. Name of the Company ,
b. Address of Registered Office,
c. Corporate Identity Number (CIN),
d. Telephone Number, Fax Number, if any,
e. E-mail and Website addresses, if any

If the name has been changed during the last two years, the previous name(s) should
be printed along with current name in the above documents.
2. The name of the Company is to be printed on hundies, promissory notes, bills of
exchange and such other documents as may be prescribed;
3. The name and registered office address of the Company are to be painted or affixed in
English and Local Language, outside every office and place of business of the
Company;
4. Appointment of whole-time Key Managerial Personnel (“KMP”) for all Listed
Companies and Public Companies having paid up capital more than INR 10 crore
whereas Private Companies are exempted from appointment of KMPs;
5. Annual Return Certification is compulsory from Practicing Company Secretary for all
Listed Companies and the companies having paid up capital of INR 10 crore or more,
or turnover of INR 50 crore;
6. At least 7 (seven) days’ notice is to be provided for holding the meeting of the board of
directors of a Company;
7. The time period between 2 (two) meeting of the board of directors should not exceed
120 (one hundred and twenty) days;
8. Secretarial Audit from Practicing Company Secretary is compulsory for Public
companies having paid up capital of INR 50 crore or more, or turnover of INR 250
crore or more;
9. Loans extended by the Company to Directors directly or indirectly, or to the companies
in which there are common directors or shareholders are strictly prohibited under
Section 185;

10. Rotation of Statutory Auditor is required after a transition period of 3 (three) years from
the date of applicability of Companies Act, 2013;
11. Auditors can now audit only up to a maximum of 20 (twenty) companies, out of which
not more than 10 (ten) can be public companies;
12. Appointment of at least 1 (one) woman director on the board of directors, is now
mandatory for of all listed companies and public companies having a paid-up share
capital of INR 100 crore or more, or a turnover of INR 300 crore of more;
13. All companies will be required to pass a special resolution u/s. 180 for taking approval
from Shareholders for approving the limit of total loan to be taken from the Financial
Institution;
14. Audit Committee, Remuneration Committee and Nomination Committee are required to
be constituted in case of Public companies having Paid up capital of INR 10 crore or
more or public companies having turnover INR 100 crore or more or having
outstanding loans/ debentures/ deposit of INR 50 crore or more;
15. At least 2 (two) Independent Directors are required to be appointed in Public companies
having Paid up capital of INR 10 crore or more or any company having turnover of INR
100 crores or more or having outstanding loans / debentures / deposits of INR 50 crore
or more;
16. Companies are compulsorily required to consolidate the accounts of its subsidiary and
associate companies into its accounts. An associate company is a company in which
another company owns / controls at least 20% (twenty percent) of its share capital;
17. If a company has a net worth of INR 500 (five hundred) crore or more or turnover of
INR 1,000 (one thousand) crore or net profit of INR 5 (five) crore or more during any
Financial Year, then such company will be required to spend at least 2% (two percent)
of its Average profits in the last 3 (three) years on CSR activities; and
18. The CSR Committee should consist of at least 3 (three) directors of which at least 2
(two) shall be Independent Directors. The CSR Committee will be required to formulate
the CSR Policy, and the same will have to be published on the Website of the
Company. In case of a private company having only 2 (two) directors, both such
directors are required to be the members of the CSR Committee.

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