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Companies Amendment Bill 2017 was passed by Lok Sabha on 27.07.2017 where there are few changes. Here is the list of changes made in the definitions


Sections Amendment
Associate Company as Per Sec 2(6) Meaning of significant influence:

Significant influence is proposed to mean control of at least 20% of the voting power or control or participation in business decision under an agreement. Initially it was 20% of share capital.

Joint venture is defined as joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.

Cost accountant as per Sec 2(28) “Cost Accountant” means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 and who holds a valid certificate of practice under sub-section (1) of section 6 of that Act.
Debenture as per Sec 2(30) instruments referred to in Chapter III-D of the Reserve Bank of India Act 1943 and such other instrument prescribed by the Central Government in consultation with RBI
Definition of Financial year Sec 2(41) Associate company of a company incorporated outside India can also apply to Tribunal for different financial year.
Holding Company as per Sec 2(46) Holding Company includes any body corporate.
Interested director as per Sec 2(49) Omitted
Key Managerial Personnel as per Sec 2(51) Includes Officers not more than one level below the directors who is in whole time employment, designated as KMP by the Board
Networh as per Sec 2(57) Debit or Credit Balance of the Profit & Loss Account to be included in Net worth
Public Company as per Sec 2(71) Company which is not a private company and

Has a minimum paid up capital as maybe prescribed.

Related Party as per Sec 2(76) Two amendments:


Instead of only Company, any Body corporate which is

(A) a holding, subsidiary or an associate company of such company;

(B) a subsidiary of a holding company to which it is also a subsidiary;


(C) an investing company or the venturer of the company;”


Investing company or

the venturer of a company” means a body corporate whose investment in the company would result in the company becoming an associate company of the body corporate

Small Company as per Sec 2(85) Maximum paid up capital for determining a small company is increased from Rs 5 Cr to Rs 10 Cr and Turnover from Rs 20 Cr to Rs 100 Cr.

Turnover should be as per the immediately preceding financial year and not as per the last financial year.

Subsidiary company as per Sec 2(87) Company will be treated as subsidiary company if the holding Company exercises or controls more than 50% of the voting power either at its own or with one or more of its subsidiaries.

Initially it was more than 50% of share capital.

Turnover as per Sec 2(91) ‘”turnover” means the gross amount of revenue recognized in the profit and loss account from the sale, supply, or distribution of goods or on

account of services rendered, or both, by a company during a financial year;’

These are the proposed changes in the definitions. My Next article would be some important changes in the other procedures under Companies Act 2013.

Please refer all the relevant sections, rules, amendments and consider all the necessary requirements as applicable. The author is not responsible for any losses caused or incurred.

Author is a Chartered Accountant in Practice and can be contacted at  or 9819244185.

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A Practicing Chartered Accountant with over 5 years of rich experience in Company Law, Audits, Accounts and taxation. She is a writer at her own blog She is keen in streamlining business accounts of the Company and provide Audit and compliance advisory services View Full Profile

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April 2024