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Wednesday, January 16, 2013

Overview of The Companies Bill, 2012

---------- Forwarded message ----------
From: Rajkumar Adukia <rajadukiagroups@gmail.com>
Date: Fri, Jan 11, 2013 at 8:05 PM



Dear Colleague,

 

Wishing you a Happy, Prosperous and a Wonderful New Year 2013!

 

The year that has gone by has definitely paved way for better changes and one such most awaited change is The Companies Bill, 2012. The Companies Bill, 2012 was passed by Lok Sabha on the18th of December 2012.

 

The new avatar of Companies Bill, is said to aim at

  • Protecting the interests of Employees and Small Investors
  • Voluntary adoption of Social Welfare Schemes
  • Clearing cumbersome procedures and making India an attractive and safe destination for Investment

 

In what way is the New Bill proposed to be different from the 56 year old Companies Act, 1956?

 

  • Introduction of "One Person Company" concept
  • More powers are being conferred upon Serious Fraud Investigation Office (SFIO) to tackle the issue of corporate frauds.
  • Special Courts for speedy trials thereby assuring investors quick action
  • Corporate Social Responsibility mandated through a statutory provision. The Companies Bill is said to make CSR spending compulsory for companies that meet certain criteria. 
  • Annual Ratification of Appointment of Auditor's for Five Years. This means, every company will now be required to mandatorily obtain the consent of its shareholders every year in order to continue with its auditors.
  • Limits the number of companies an auditor can serve to 20, while also bringing more clarity on criminal liability of auditors.
  • New Clause related to offence of falsely inducing banks for obtaining credit.
  • Companies are allowed to have only two layers of subsidiaries for investment
  • Companies are encouraged to Create Employees Welfare Fund
  • Whistle Blower policies and Class Action Suites

 

The number of companies registered under the Companies Act 1956 have crossed over 8 lakhs, its time that a new enactment came into force embracing the growing requirements of Companies in India.

 

Please find herewith a small write up on "Overview of Companies Bill, 2012", for quick glance at the Companies Bill, 2012.

As always, kindly send your comments and suggestions at rajkumarradukia@caaa.in or reach me at 09820061049/09323061049.


Click here to download  Overview of Companies Bill, 2012

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