Friday, March 11, 2016

Companies Law Committee submitted report recommending changes in the Companies Act, 2013

Companies Law Committee had submitted its report to the Government for examining and making recommendations on changing of the Companies Act, 2013.
Changes are as follow:
  • Administrative compensation to be approved by shareholders
  • Re-opening of accounts is limited to 8 years.
  • Limit on sweat equity is raised to 50% of paid up capital from 25% for start-ups.
  • Frauds less than Rs. 10 Lakh are considered as compoundable offences.
Keys
  • Secretary of Ministry of Corporate Affairs – Tapan Ray

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