In this editorial author shall discuss all the amendments under the Companies Act, 2013 which came into effect from 01st April 2021 and impact the financial year 2021-22.
Many amendments have been made by MCA and Govt in the last Financial Year i.e. 2020-21. However, out of those amendments, many amendments are effective from 01st April 2021.
CHANGE IN DEFINITION OF SMALL COMPANY
The Companies (Specification of Definitions Details) Amendment Rules, 2021 passed on 1st February 2021. Definition of Small Company has been changed by these amendments. This Rules came into effect from 1st April 2021
IMPACT ON DEFINITION
"Small Company" means a company, other than a public company,
Having i.e the paid-up capital should Rs. 2 Crore or more or the turnover as per last statement of profit & loss should Rs. 20 Crore or more. If any of the given limits crossed at any point of time then such a Company shall be out of the preview of a Small Company.
AMENDMENT IN CONCEPT OF ONE-PERSON COMPANY
The Companies (Incorporation) Second Amendment Rules, 2021 passed on 1st February 2021, through these rules MCA has made amendments in many provisions of One Person Company like:
This Rules came into effect from 1st April 2021
1. NRI can incorporate One Person Company in India.
2. It is not mandatory to convert One Person Company in other types of company irrespective of Turnover.
3. OPC can convert in other types of Company any time after incorporation without any transition period.
4. Process of OPC in other types of Company has been completed amended.
AMENDMENT IN DEFINITION OF LISTED COMPANY
The Companies (Specification of Definitions Details) Second Amendment, Rules 2021 passed on 19th February 2021. This Rules came into effect from 1st April 2021.
Definition of Listed Company has been changed by this amendment: Following companies shall not be considered as Listed Company
a. Public companies which have not listed their equity shares on a recognized stock exchange but have listed their -
(i) non-convertible debt securities issued on private placement basis in terms of SEBI (Issue and Listing of Debt Securities) Regulations, 2008; or
(ii) non-convertible redeemable preference shares issued on private placement basis in terms of SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013; or
(iii) both categories of (i) and (u) above.
b. Private companies which have listed their non-convertible debt securities on private placement basis on a recognized stock exchange in terms of SEBI (Issue and Listing of Debt Securities) Regulations, 2008;
c. Public companies which have not listed their equity shares on a recognized stock exchange but whose equity shares are listed on a stock exchange in a jurisdiction as specified in sub-section (3) of section 23 of the Act.”.
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