In order to submit a comment to this post, please write this code along with your comment: b5ed1269091e93a380b65bfbbdfda11e. The bill proposed 72 changes to the Companies Act, 2013. For example, it removes the imprisonment of three years applicable to a company for buying back its shares without complying with the Companies Act, 2013. Amendments made to Corporate Social Responsibility section 135 to bring greater clarity to existing provisions. The Companies (Amendment) Bill, 2020 has been based on the Company Law Committee which was set up under the Chairmanship of Shri Injeti Srinivas in September, 2019. We are a group of young and expert professionals in finance, accounts and law, helping businesses focus on their growth while we give them compliance fulfillment. The Finance Ministry has notified the Companies (Amendment) Act, 2020 which seeks to amend the Companies Act, 2013. The CLC was constituted with a view to decriminalize offences and provide ease of doing business to the corporates and other stakeholders. It was passed by the Lok Sabha on 19 th September, 2020 and by the Rajya Sabha on 22nd September, 2020. It shall be noted that where a specific penalty is not mentioned, the Companies Act, 2013 prescribes a penalty of up to Rs.10,000 which may extend to Rs. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Notification S.0. The Companies (Amendment) Bill, 2020 received the President’s assent on 28th September 2020. ... Place land reform acts and amendments to these act under Schedule 9 of the constitution. The government on Wednesday cleared more amendments to the companies law, including decriminalising various offences. Recent Amendments to the Companies Act 2013 March 10, 2020 April 14, 2020 Aravind Legal , Registration Company administration is the responsibility of the Ministry of Corporate Affairs (MCA) of the Govt. Also, companies spending over their CSR obligation in a particular financial year will be permitted to reduce their CSR spending accordingly in upcoming fiscals. Later it was passed by the Lok Sabha on September 19, 2020 and by the Rajya Sabha on September 22, 2020. Section 446B provides lesser penalties for one-person companies and small companies. It is proposed to provide relief in the case when higher fees are required to be submitted in case of 2 or more such failures. A separate chapter on ‘Producer’ companies (a legally recognized body of farmers) to be included. The relevant notified sections of the Companies Act, 2013 and legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authorities up to 31st October, 2020 will be applicable for May 2021 Examination. (B) 16/2020.On the same date of 15 January 2020, the Companies (Company Auditor and Liquidator Fees) Regulations 2020 will also come into force (see P.U. The following major changes have been introduced in the 2019 AmendmentAct: (1) This Act may be called the Companies (Amendment) Act, 2020. Copyright © TaxGuru. The Companies (Amendment) Bill will amend various sections of the Companies Act, 2013 by decriminalizing various non-compoundable offences in case of defaults, but not involving frauds, omitting imprisonment for various offences which were considered procedural and technical in nature. The Union Cabinet has approved the Companies (Second Amendment) Bill, 2019 to amend the Companies Act, 2013. Under the Act, companies with net worth, turnover or profits above a specified amount are required to constitute CSR Committees and spend 2% of their average net profits in the last three financial years, towards its CSR policy. Under the 2013 Act, certain provisions from the Companies Act, 1956 continue to apply to producer companies. Companies with Corporate Social Responsibility obligations up to 50 Lakhs will not be required to set up a CSR Committee. In a new addition, in case the number of members of a company falls below 7 for a public company and 2 for a private company and the company continues to do business with these reduced numbers for a period exceeding 6 months then these reduced members will be liable for debts incurred during this period. The enforcement date was gazetted through P.U. Amendment in Companies (Meeting of Board and its Powers) Rules, 2014: The Ministry of Corporate Affairs (MCA) has notified the Companies (Meeting of Board and its Powers), Second Amendment Rules, 2020 on 23 rd day of June 2020 to amend Rule 4(2) thereby extending the date up to which all companies can hold their board meetings for approval of … Chief Executive Officer will now mandatorily sign the financial statements whether appointed as director or not. Further, with a view to decriminalize the offence, if committed by a company, in case of default in this section, the CG shall allot a new name as per the directions of the ROC to the company and the ROC shall issue a fresh Certificate of Incorporation. Exclusion of such listed companies and companies with the intention of getting listed such class of securities from the category of listed companies. Section Name Before Amendment … Key features of the Companies (Amendment) Bill, 2019: Exemptions for complying with Section 89 for any class of persons is proposed. In section 8 of the principal Act, in sub-section (11),— (a) the words “with … CA Final Amendments May 2021 – New Syllabus Paper-1 FR (Financial Reporting) Download FR Study Material November 2020 Edition that is applicable for May 2021. Form MGT-14(details of resolutions and agreements of the board) no longer available for public inspection on the MCA website. There is much about the COVID-19 virus that is as yet unknown and even now, it continues to surprise virologists... With the outbreak of the COVID-19 pandemic, the physical shutting down of industries, enterprises, and offices has been inevitable. Almost 23 offences would be recategorised out of the 66 compoundable offences under the Act, to … For assistance, email [email protected] | 044 - 46315959. Beneficial shareholding: Under the Act, if a person holds beneficial interest of at least 10% shares … Presenting the Union Budget for 2020-21 financial year, she assured taxpayers that the government remains committed to taking measures so that they … RECENT CHANGES IN COMPANIES ACT, 2013 VIDE COMPANIES (AMENDMENT) ACTS, 2019 AND COMPANIES (AMENDMENT) ACTS, 2020 Sl No. Many offenses that would earlier have been punishable by fines and imprisonment would not only attract a penalty. 73 (2) (C ) of the companies Act 2013 and to further invest or deposit 15% of the amount of debentures u/r.18 of Companies (Share Capital and Debentures) Rules 2014. It is proposed to extend the applicability of 446B so that it covers all monetary penalties under the act and also cover producer companies and start-ups under its umbrella. The Companies (Amendment) Act, 2020, was passed by Lok Sabha through voice vote. 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