Brief bullet points on Companies (Amendment) Bill, 2020, As introduced in Loksabha on 17th March 2020
|Section||Old Provisions||New /Amended Provisions||Remarks|
|62||Minimum time period of 15 days for subscribe to Right issue (Issue open time )||Now this 15 days will be reduced . The word “or such lesser number of days as may be prescribed” shall be inserted .||This will help the company close the period at the early once all the shares are subscribed and speed up the process.|
|129A||New Section||1. Unlisted “ companies “to prepare periodic financial results .
2. To take Board approval and prepare & complete Audit or Limited Review
3. A copy shall be filed with ROC with fees
|This is like and at par with Listed companies as per LODR.
MCA will bring some private companies as well based on TO/Paid up share capital within this new provisions to track & monitor them.
|135||New set off provisions and no requirement to constitute CSR committee||1. A company to whom CSR provisions applies , spends in “ excess” of requirements u/s 135, the excess amount can be adjusted in next Financial years .
2. If the amount to be spent does not exceed Rs 50 Lakh in a year then the constitution of CSR committee is not required and Board can discharge the same .
|This is a new provisions to give a relief to a company who spends more amount voluntarily .
The provision of transfer of unspent amount is yet to be effective .(section 135-6)
|149||Independent Director gets sitting Fees and profit related commission .||Now Independent Director will gets remuneration evenif there is no profit /inadequate profit as per Sch V apart from sitting fees .||This is a good move since there is stringent compliance for Independent Director , they should be treated at par with other Managerial Persons|
|197||Payment of Remuneration only to MD, WTD or MGR in case there is no profit or inadequate profit as per SCH-V||Now this privilege of payment of remuneration during the No profit /inadequate profit also to cover “ Non –Executive Directors & Independent Directors as well.||This is a good move by MCA since Other directors are also part of the management team . This will enhance the productivity of such non-executive directors because of their increased remuneration.|