HIGH LIGHTS-COMPANIES BILL-2008

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shailesh agarwal

professional accountant

7647 Points Joined September 2008

HELLO

HIGHLIHTS-COMPANIES-BILL-2008

FOR A QUICK REVIEW FOR ALL STUDENTS

SHAILESH AGARWAL

SUMMARY OF ORIGANALY POSTED BY AISH-THANKS TO AISH

HIGH LIGHTS

COMPANIES BILL-2008

ü 1-Incorporation to liquidation in a single comprehensive,legal frame work

ü 2-Articulation of shareholders democracy

ü 3-Easy transition of companies under the companies act-1956

ü 4-A new entity in the form of one person company(opc)

ü 5-Stringent regime with charitable objectsto check misuse

ü 6-E-Governance-company processes may also be carried out through electronic mode

ü 7-Speedy incorporation-every company would be required a unique director identification number(DIN)

ü 8-Relaxation of restrictions limiting the number of partnersin banking….(100)

ü 9-every company to have at least one director resident in India.

ü 10-Statutory Reconition To CEO And CFO –As (Kmp) Key Managerial Personnel

ü 11-Consolidation of financial statements of subsidiaries with those of holding companies is proposed to be mandatory

ü 12-A single forum for approval of mergers and acquisitions

ü 13-Appointment of valuers is proposed to be made by audit committee

ü 14-Claim of an investor over a dividend for more than a 7 years not to be extinguished

ü 15“Clause Action suits”-shareholders association to be enabled to take legal action in case of any fraudulent action on the part of company .

ü 16-Regulation of insolvency(revised andtime bond

ü 17-Rehabilitation and insolency fund with voluntary contributions linked entitlements to draw money in a situation of insolvency

ü 18-A more effective regime for inspections and investigation-minimum quantam of penaltyfor each offence with suitable deference for repeated defaults

ü In case of fraudulent activities ,provisions for recovery and disgorgement have been included

ü 19-Defauts of procedural nature to be penalised by levy of monetary penalties

ü 20-Special court to deal with offences under the bill(nclt) national company law tribunal.

Shailesh agarwal-25.10.08

Summarized from the source ca cluan-posted by aisha -23.10.08

Replies (2)

arvind goyal

student

20 Points Joined October 2008

Originally posted by :shailesh agarwal
"	HELLO HIGHLIHTS-COMPANIES-BILL-2008 FOR A QUICK REVIEW FOR ALL STUDENTS SHAILESH AGARWAL SUMMARY OF ORIGANALY POSTED BY AISH-THANKS TO AISH HIGH LIGHTS COMPANIES BILL-2008 ü 1-Incorporation to liquidation in a single comprehensive,legal frame work ü 2-Articulation of shareholders democracy ü 3-Easy transition of companies under the companies act-1956 ü 4-A new entity in the form of one person company(opc) ü 5-Stringent regime with charitable objectsto check misuse ü 6-E-Governance-company processes may also be carried out through electronic mode ü 7-Speedy incorporation-every company would be required a unique director identification number(DIN) ü 8-Relaxation of restrictions limiting the number of partnersin banking….(100) ü 9-every company to have at least one director resident in India. ü 10-Statutory Reconition To CEO And CFO –As (Kmp) Key Managerial Personnel ü 11-Consolidation of financial statements of subsidiaries with those of holding companies is proposed to be mandatory ü 12-A single forum for approval of mergers and acquisitions ü 13-Appointment of valuers is proposed to be made by audit committee ü 14-Claim of an investor over a dividend for more than a 7 years not to be extinguished ü 15“Clause Action suits”-shareholders association to be enabled to take legal action in case of any fraudulent action on the part of company . ü 16-Regulation of insolvency(revised andtime bond ü 17-Rehabilitation and insolency fund with voluntary contributions linked entitlements to draw money in a situation of insolvency ü 18-A more effective regime for inspections and investigation-minimum quantam of penaltyfor each offence with suitable deference for repeated defaults ü In case of fraudulent activities ,provisions for recovery and disgorgement have been included ü 19-Defauts of procedural nature to be penalised by levy of monetary penalties ü 20-Special court to deal with offences under the bill(nclt) national company law tribunal. Shailesh agarwal-25.10.08 Summarized from the source ca cluan-posted by aisha -23.10.08	"

souvik

Chartered Accountant

84 Points Joined January 2008

Good news for CA, CS & CWA s looking to enter into partnership. With the advent of the Limited Liability partnership act, necessary amendments in the professional ethics of the respective institutes and the proposed Companies bill 2008 the path for multi disciplinary firms is clear.

Even previously while they could enter into parnerships they could not undertake Statutory audits as the Companies Act 1956 clearly provided

226. Qualifications and disqualifications of auditors

(1) A person shall not be qualified for appointment as auditor of a company unless he is a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of. 1949):

Provided that a firm whereof all the partners practising in India are qualified for appointment as aforesaid may be appointed by its firm name to be auditor of a company, in which case any partner so practising may act in the name of the firm.

Therefore all partners needed to be CAs in Practice

Now lets read the proposed Companies Bill 2008 Clause 124

124. (1) A person shall be eligible for appointment as an auditor of a company only if
he is a Chartered Accountant in practice.
(2) Where a firm is appointed as an auditor of a company, only the partners who are
Chartered Accountants in practice shall be authorised by the firm to act and sign on behalf
of the firm.

Therefore only signing partner needs to be CA in practice