Statutory Limits Under Companies Act 2013

Corporate Master 31 May 2021 7,905 Views 0 comment Print Company Law | Articles

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The Companies Act,2013 has prescribed various limits for the appointment of auditors, directors and committees which is difficult to remember in one go.

So below is the confined chart consisting of all the limits prescribed under Companies Act,2013.

Constitution of Committees
S.No.	Name of the Committees	Which companies are required to form such committees
1.	Audit Committee	Every listed company All public companies 1. with a paid-up capital of Rs.10 Crores or more OR 2. having turnover of Rs.100 Crores or more; OR 3. having in aggregate, outstanding loans or borrowings or debentures or deposits exceeding Rs.50 Crores or more.
2.	Nomination and Remuneration Committee	Same as that of Audit Committee
3.	Stakeholder Relationship Committee	Every listed company A Company which consists of more than 1000 shareholders, debenture-holders, deposit-holders and any other security holders at any time during a financial year.
4.	Risk Management Committee	*As per the latest SEBI(LODR) (Second Amendment) Regulations, 2021* top 1000 listed companies based on market capitalisation
5.	Corporate Social Responsibility Committee	Every company having Net worth of 500 Crores or more, or Turnover of 1000 crore or more or Net profit of 5 crore or more during the immediately preceding financial year
Appointment of Directors/KMP and Auditors
S.No.	Name of the Directors/Auditors	Which companies are required to form
6.	Independent Director	Every listed company All public companies 1. with a paid-up capital of Rs.10 Crores or more OR 2. having turnover of Rs.100 Crores or more; OR 3. having in aggregate, outstanding loans or borrowings or debentures or deposits exceeding Rs.50 Crores or more. (Exemption has been provided to certain public companies)
6.	Women Director	Every listed company All public companies 1. with a paid-up capital of Rs.100 Crores or more OR 2. having turnover of Rs.300 Crores or more;
7.	Small Shareholder Director	A listed company upon a notice of not less than 1000 small shareholders or 1/10^th of the total number of shareholders whichever is lower.
8.	Managing Director OR Chief Executive Officer OR Manager OR in absence Whole Time Director AND Chief Financial Officer	Every listed company All public companies with a paid-up capital of Rs.10 Crores or more
9.	Company Secretary	Every listed company All companies with a paid-up capital of Rs.10 Crores or more
10.	Internal Auditor	Every listed company All public companies 1. with a paid-up capital of Rs.50 Crores or more OR 2. having turnover of Rs.200 Crores or more; OR 3. having in aggregate, outstanding loans or borrowings from banks and PFI exceeding Rs.100 Crores or more. OR 4. Having outstanding deposit of 25 crore or more. All private companies 1. having turnover of Rs.200 Crores or more; OR 2. having in aggregate, outstanding loans or borrowings from banks and PFI exceeding Rs.100 Crores or more.
11.	Cost Auditor	The companies as notified by the Central government and which are engaged in production of certain goods and services under Sec 148 of Companies Act.
OTHERS
12.	XBRL Filing	Every listed company and its subsidiaries All companies 1. With turnover of 100 crore or more OR 2. With paid up share capital of 5 crore or more OR 3. Which are required to prepare financials in accordance with Companies (Indian Accounting Standards) Rules,2015. *Banking Companies and NBFCs are exempted from such filing.
13.	Certificate in Form No. MGT-8 certified by PCS	Every listed company All companies 1. With paid up share capital of 10 crore or more OR 2. Turnover of 50 crore or more
14.	Secretarial Audit	Every listed company All public companies 1. With paid up share capital of 50 crore or more OR 2. Turnover of 250 crore or more Every company having outstanding loans or borrowings form banks and FIs of 100 crore or more.
15.	Voting by electronic means to be provided in the general meeting	Every listed company Every company having not less than 1000 members.
16.	Rotation of individual/audit firm as auditor of the company	Every listed company All public companies having paid up share capital of 10 crores or more All private companies having paid up share capital of 50 crores or more OR All companies having public borrowings form FIs, banks of 50 crore or more.

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Name: Corporate Master

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