Key amendments proposed in Companies Act, 2013.

[rajagopal S]

Companies Amendment Bill, 2016 (the bill) was introduced in Lok Sabha on 16th March, 2016. The amendments proposed in the bill are aimed at easing of business and addressing issues faced in implementation of Provisions of Companies Act, 2013.

Key amendments proposed in the bill are as follows:

1) Appointment of auditors: Proposal to do away with Annual Ratification by Members w.r.t appointment of auditors. 

2) Loans, Advances to Directors:  Bill seeks to limit the prohibition on loans, advances, etc., to any person in which any of the director is interested in. It has been proposed to allow companies to give loan's or guarantee's subject to passing of special resolution by the company.

3) Remuneration to Manager's-Simplified. It has been proposed to do away with requirement of obtaining special resolution and approval of Central Govt. for payment of managerial remuneration in excess of prescribed limits of Schedule V. 

4) Private placement -simplified : Bill proposes to simplify the requirements with reference to private placements, such as doing away with separate offer letter, reducing number of filings with registrar