Tuesday, January 15, 2013

LOK SABHA APPROVES COMPANIES BILL

KEY AMENDMENTS

  • CSR: Spending 2% of average net profit on CSR makes mandatory for firms.
  • Pay: A director's remuneration should not exceed 5% of a company's net profit.
  • Compensation: If a firm winds up operations, it must pay two years' salary to its employees.
  • Auditors: The number of firms an auditor can serve capped at 20
  • Rotation: Appointment of auditors for five years to be ratified annually. Mandatory auditor rotation after 5 yrs / 10 yrs of proprietorship firms / partnership firms.
  • SFIO: More statutory powers given to SFIO to tackle corporate fraud.

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