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:
- Declaration given by Subscribers
Instead of affidavit, first subscribers to memorandum and articles are required to give only self-declaration.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.