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Companies Amendment Act 2017

The companies Act, 1956 has undergone many amendments the latest being passed on 27th July,2017. Get an insight on the Amendment and know what lies for future of your company.

  • Act passed in Lok Sabha :- 27th July 2017.
  • Act passed in Rajya Sabha :- 19th December 2017.
  • Assent of the President :- 3rd January 2018.

Amendment under Companies Act 2017 is broadly aimed to:-

1) Making easy compliances for doing business and promote growth with employment.

2) Connecting laws with accounting standards, The SEBI Act 1992, and RBI Act 1934.

3) Rectifying omissions and inconsistencies in the act.

4) Addressing difficulties in implementation of stringent compliance requirements.

Highlights of Companies Amendment Act 2017:-

  • Matters which needed to be stated in Prospectus:- It shall state such information and set out such reports on financial information as may be specified by SEBI in consultation with Central Government.
  • Issue of sweat equity shares:- Company is now allowed to issue sweat equity shares at any time after its incorporation irrespectively earlier there was a restriction of 1 year.
  • Name Approval:- Name reservation in case of new company shall be valid for 20 Days from the date of approval instead of 60 Days.
  • Existence of Registered office:- Every company shall have a registered office within 30 Days of incorporation instead of 15 Days as per Companies Act 2013.
  • Change in registered office:- Notice of every change of situation of registered office shall be given to registrar within 30 Days instead of 15 days.
  • Annual General meeting of Unlisted company can be held anywhere in India.
  • Auditor’s Ratification:- Annual ratification of appointment of auditor by members is omitted.
  • Additional fee in case of late filing of Annual return or submission of Financial Statement:- Late filing will result in penalty of Rs. 100/- per day instead of slab wise additional fee.
  • Requirement to file extract of Annual return is omitted i:e; e- form MGT-9.
  • Requirement of approval from the Central Government for managerial remuneration, above prescribe limits are replaced by approval through special resolution by shareholders in annual general meeting.
  • In addition to Directors  & KMP any employee of the company can also authenticate company documents as authorized.
  • Central Government can provide any other number to be treated as DIN like Aadhar No. or PAN No.
  • Requirement of filing of E- Form DIR-11 (filing of copy of resignation to ROC by director itself) made optional.
  • Disclosures which have been provided in the financial statement shall not be required to be reproduced in Board Report again.
  • At the time of incorporation of the Company, declaration by each subscriber will be required to be attached instead of an affidavit & not on self declaration.

Conclusion:- Year 2017 provide a helping hand to Companies Amendment Act 2013 by amending problematic solutions