Wednesday, August 14, 2013

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.


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