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Highlights of the Companies Bill

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Product Specifications

Publisher ICSI
Number of Pages 18
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  • About the book

About this eBook

The entire bill has been divided into 29 chapters. Many new chapters have been introduced, viz., Registered Valuers ch.17 Government companies ch. 23 Companies to furnish information or statistics ch. 25 Nidhis ch. 26 National Company Law Tribunal Appellate Tribunal ch. 27 Special Courts ch. 28 . The Bill is forward looking in its approach which empowers the Central Government to make rules, etc. through delegated legislation clause 469 and others . The Companies Bill is the result of detailed consultative process adopted by the Government.
The salient and unique features of the Bill are as under 1. DEFINITIONS New definitions are introduced in the Bill, some of which are accounting standards, auditing standards, associate company, CEO, CFO, control, deposit, employee stock option, financial statement, global depository receipt, Indian depository receipt, independent director, interested director, key managerial personnel, promoter, one person company, small company, turnover, voting right etc. Definition of private company changed - the limit on maximum number of members increased from 50 to 200. Private company which is a subsidiary of a public company shall be deemed to be a public company. Listed company - A company which has any of its securities listed on any recognised stock exchange. Associate Company - A company is considered to be an associate company of the other, if the other company has significant influence over such company not being a subsidiary or is a joint venture company. Significant influence means control of at least 20 per cent. of total share capital of a company or of business decisions under an agreement. Dormant Company - Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar for obtaining the status of a dormant company. "expert" includes an engineer, a valuer, a chartered accountant, a company secretary, a cost accountant and any other person who has the power or authority to issue a certificate in pursuance of any law for the time being in force. "foreign company" means any company or body corporate incorporated outside India which, a has a place of business in India whether by itself or through an agent, physically or through electronic mode and b conducts any business activity in India in any other manner. "Key Managerial Personnel KMP , in relation to a company, means i the Chief Executive Officer or the Managing Director or the Manager, ii the Company Secretary iii the whole-time director iv the Chief Financial Officer and
v such other officer as may be prescribed "officer who is in default", means any of the following officers of a company, namely i whole-time director ii key managerial personnel iii where there is no key managerial personnel, such director or directors as specified by the Board in this behalf and who has or have given his or their consent in writing to the

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