Skip to main content

Companies Act 2013 - Key Highlights

The Companies Bill has been passed by the Lok Sabha and Rajya Sabha as well. The bill is seeing light after decades of discussions and debates.

All credits to the Minister of Corporate Affairs for taking the bill through the lower house soon after assuming office.

Key highlights of the bill are:

Class Action suits introduced for the benefit of investors

One Person Company (OPC) introduced

Certain class of companies are required to spend at 2% of their average Net profits on Corporate Social Responsibility.

Severe punishment for fraud against investors

National Financial Regulatory Authority (NFRA) to be set up - this has curbed some rights and powers of Chartered Accountants with respect to setting up of Accounting and Auditing standards.

A CA can have maximum 20 companies as audit clients.

Every company to have a single financial year end - 31st-March. Certain exceptions apply.

A Private company can have 200 members (up from 50)

Concept of Dormant company introduced.

National Company Law Tribunal to be formed.

Non Banking Financial Companies (NBFCs) not covered by Acceptance of Deposit Rules. They will be guided by RBI.

Many definitions have been introduced for more clarity such as Private Placement, Key Management Personnel, Small Company, Independent Director among others.

Financial Statements to include Balance Sheet, Profit & Loss Account, Cash Flow Statement and Statement of Changes in Equity.


Refer link for more detailed highlights: View Detailed Highlights (An ICA Publication)



Labels:

Comments

Post a Comment

Popular posts from this blog

Vikash Goel - Introduction

Hello People, Welcome to my Blog Please pardon me if u find this blog a bit unconventional, unusual and out of place. To be honest, m not a blogger and this is my Debut as far as Blogging is concerned. I am a simple, average guy from Kolkata, India. I am a CA, MS Finance, CFA (ICFAI, India), Diploma in Business Management, Bachelor of Commerce. Meanwhile for a quick look about me, visit the link below, (its become a little outdated as of now but still enough to give an idea about me) http://www.freewebs.com/vikash_goel/ www.vikashgoel.com Catch ya soon
1 comment
Read more

Angel Tax on start-ups may be amended soon

The Angel Tax imposed on start-ups has been the talk of the town lately. Various start-up founders have received demand notices from the tax authorities which plans to tax the capital receipts in the form of Income when the tax authorities believe that the amount is in excess of the value of the company. What is Angel Tax? In 2012, the then Finance Minister Pranab Mukherjee introduced a tax on unlisted companies which aimed at raising funds from investors (the 'angel investors") who invested in these companies with the objective of gaining significant returns. Since many companies used this route to launder money and raise funds at excessive valuations, the tax was imposed to arrest such money laundering. Angel Tax is a tax payable by the unlisted companies who raise funds via issue of shares where the share price is believed to be in excess of the fair market value of the shares sold. What is a Startup? An entity shall be considered as a Startup: (i). Upto a period o...
Post a Comment
Read more

Economic Survey 2013 Highlights

Chief Economic Advisor Raghuram Rajan tabled his first ever Economic Survey. Key features of the Survey are: GDP growth for 2012-13 is expected at 5% GDP growth for 2013-14 is expected at 6.1% to 6.7% The Average WPI Inflation has come down from 8.9% in 2011-12 to 7.6% in 2012-13 The Average CPI Inflation has increased from 8.4% in 2011-12 to 10.0% in 2012-13 Gross Fiscal Deficit has come down from 5.7% of GDP to 5.1% of GDP Revenue Deficit has come down from 4.3% of GDP to 3.5% of GDP The trade deficit increased to US$ 189.8 billion (10.2 per cent of GDP) in 2011-12 as compared to US$ 127.3 billion (7.4 per cent of GDP) during 2010-11. Current account deficit seen at 4.6% for 2013-14 Overall global economic environment remains fragile Gold imports is key contributor to inflation, imports need to be curbed LPG and Diesel prices need to be increased in line with global rates, oil subsidy is a key risk
1 comment
Read more