Rajya Sabha clears Companies Bill

The Rajya Sabha clears Companies Bill, in a move of replacing the 57- years old Companies Act, 1956. Following are the new features added in the Companies Bill by the Upper House of Parliament:-

• One person Company: Any individual can float one person company, a major boost to micro entrepreneurs.
• Corporate Social Responsibility (CSR): The Companies need to earmark 2 per cent of their net profits towards CSR every year.
• Rotation of Auditors: Compulsory rotation of individual auditors in every five years and for audit firms in every 10 years in listed companies.
• Secretarial Audit: Now mandatory for Listed Companies.
• Class Action Suits: Shareholders and Depositors can now file class action suits.
• Gender Equality in Boards: One Woman Board Seat Mandatory.