Companies Act, 2013 is out. Companies have to fulfill the requirements stated therein. Few provisions have already been published which can be found at:
Some more provisions are stated hereunder:
1. Appointment of Company Secretary: Now, only a Public Limited Company whose paid up capital is more than 10 Crores needs to appoint whole time Company Secretary.
2. The company has to prepare its annual return in Form MGT 7.
3. The annual return, filed by a listed company or a company having paid up share capital of ten crores or more or turnover of fifty crore rupees or more shall be certified by a Company Secretary in practice and the same shall be in Form MGT8.
4. The extract of the annual return to be attached with the Board’s report shall be in Form MGT 9.
5. Borrowings can be only from directors. If the same is taken from any other person, then the same will be treated as deposits
6. Unsecured loan can be taken from promoters only of any stipulation is imposed by the Financial Institution or Bank
7. Section 185 of companies act prohibits loan to Directors.
8. As per section 177, Audit Committee and as per section 178 Remuneration Committee and Nomination Committee is required to be constituted in case of Public Companies having paid up capital of Rs. 10 crores or more or the companies having turnover more than Rs. 100 crores or more or having outstanding loans/debentures/deposit exceeding Rs. 50 crores or more.
9. The companies having profit more than Rs. 5 crores, net worth of Rs. 500 crores or more, or turnover of Rs. 1000 crore or more in any of the end of Financial Year, the company is required to incur expenses on Corporate Social Responsibility.
10. Every Listed Company and a public company having paid up share capital of Rs. 100 crores or more or turnover of Rs. 300 crores need to appoint a Woman Director.
11. Every Listed company and a public company having paid up share capital of ten crore rupees or more or turnover of one hundred crores or more or have in aggregate, outstanding loans, debentures and deposits, exceeding fifty crores needs to appoint Independent Director on the board.
12. Unlisted public companies having paid up share capital of Rs. 10 crores or more or private companies having paid up share capital of Rs. 20 crores or more or all companies having paid up share capital of below threshold limited as specified above but having public borrowings need to retire their auditors as per time period specified in the act in this behalf.
(Author ‘Sagar Gupta’ is an innovative leader in delivering corporate advisory & solutions and can be reached at firstname.lastname@example.org)