Silent features of new companies act

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Darshan Gohil (Querist)
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19 January 2014 Salient features of the new company bill: - Companies are required to spend at least two percent of their net profit on Corporate Social Responsibility. - To help in curbing a major source of corporate delinquency, introduces punishment for falsely inducing a person to enter into any agreement with bank or financial institution, with a view to obtaining credit facilities. - The limit in respect of maximum number of companies in which a person may be appointed as auditor has been proposed as 20. - Independent directors' shall be excluded for the purpose of computing 'one third of retiring directors'. - Appointment of auditors for 5 years shall be subject to ratification by members at every Annual General Meeting. - 'Whole-time director' has been included in the definition of the term 'key managerial personnel'. - The term 'private placement' has been defined to bring clarity. - Maximum number of directors in a private company increased from 12 to 15 which can be increased further by special resolution. - Financial Year of any company can end only on March 31 and only exception is for companies, which are holding / subsidiary of a foreign entity requiring consolidation outside India, can have a different financial year with the approval of Tribunal.... -Dev