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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