Browse Month: January 2018

Name Reservation or Approval

With the amendment made in Companies Act, 2013 the key changes introduced under section 4 of Companies Act, 2013 for Name Reservation/Approval:

FOR NEW COMPANY:

The registrar on the basis of information and documents furnished along with the application, reserve name for a period of twenty days from the date of approval or such other period as may be prescribed, thereby the period of name reservation is reduced to twenty days from sixty days.

FOR EXISTING COMPANY:

An application for reservation of name or for change of its name by an existing company , the registrar may reserve the name for a period of sixty days from the date of approval.

Ease of doing Business

A bill to amend the companies law to strengthen corporate governance standards, initiate strict action against defaulting companies, and help improve the ease of doing business in the country was passed by the parliament on 3rd of January, 2018.

With the amendment made in Companies Act, 2013 many relaxations have been provided to the Company for better & smooth functioning:

  1. Declaration given by Subscribers

Instead of affidavit, first subscribers to memorandum and articles are required to give only self-declaration.

  1. Disclosures under Board’s Report

For small company and One Person Company the format of annual return has been shorten. Further, the requirement to disclose indebtedness and to indicate the names, address, countries of incorporation registration and percentage of shareholding held by or on behalf of Foreign Institutional Investors has been omitted.

  1. Filing of Annual Return

If the company has web-link then they don’t have to file the extract of Annual Return with Board Report instead they just need to upload the same on website and mention the link on their Board Report.

  1. Calling of Extraordinary General Meeting

Apart from wholly owned subsidiary of a company incorporated outside India, extraordinary general meeting of the company shall be held at a place within India.

  1. Transaction of business item through postal ballot

Any item of business which is required to be transacted by postal may be transacted at general meeting provided e-voting facility is given to members.

  1. Appointment of Director

The requirement of depositing Rs 1,00,000/- with respect to nomination of directors shall not be applicable in case of appointment of independent directors or directors nominated by nomination and remuneration committee.

  1. Disclosure to Registrar

No need to file a return with the Registrar with respect to change in number of shares held by the promoters and top ten shareholders of listed company.

  1. Keeping of registers and returns of the Company

The Company does not have to file with Registrar a copy of special resolution in advance in respect of members approval for keeping register/return at any other place in India other than registered office.

  1. Participation through video-conferencing

The directors are allowed to participate on certain items which were restricted at Board Meeting through video conferencing provided quorum is there through physical presence of directors.