Highlights of new Companies Bill

New Delhi, Aug 8 : The Indian parliament Thursday gave its nod to the Companies Bill, 2012. Here are the salient features of the new bill:

-- 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 bank or financial institution, with a view to obtaining credit facilities.

-- The limit in respect of maximum number of companies in which a person may be appointed as auditor has been proposed as 20.

-- Independent directors' shall be excluded for the purpose of computing 'one third of retiring directors'.

-- Appointment of auditors for 5 years shall be subject to ratification by members at every Annual General Meeting.

-- 'Whole-time director' has been included in the definition of the term 'key managerial personnel'.

-- The term 'private placement' has been defined to bring clarity.

-- Maximum number of directors in a private company increased from 12 to 15 which can be increased further by special resolution.

-- Financial Year of any company can end only on March 31 and only exception is for companies, which are holding / subsidiary of a foreign entity requiring consolidation outside India, can have a different financial year with the approval of Tribunal.

--IANS (Posted on 08-08-2013)

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