Some Highlights of Companies Bill 2012
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1.The maximum number of members, which a Private Company can have, is increased from 50, as provided in the Companies Act 1956, to 200.
2.The concept of One Person Company has been introduced and the said company will be formed as a private limited company. This concept has been introduced for the first time.
3.The Bill provides provision for compulsory rotation of individual auditors in every five years and of audit firm every 10 years in the listed company & certain other class of companies, as may be prescribed.
4.Every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting.
5.No approval is required of central government for the appointment of cost auditor to conduct the cost audit.
6.In prescribed class or classes of companies, there should be at least 1 "WOMAN DIRECTOR".
7.The maximum limit of directors in the Company has been increased to 15 from the 12, as provided in the Companies Act 1956, with a power to add more directors upon passing of Special Resolution.
8.A person cannot become directors in more than 20 companies instead of 15 as provided in the Companies Act 1956. and out of this 20, he cannot be director of more than 10 public companies.
9 Composition of Audit Committee has been changed. It shall now comprise of minimum 3 directors with majority of the Independent Directors and majority of members of committee shall be person with ability to read and understand financial statement.
10.The limits for political contribution by company have been changed. Now instead of 5% as provided in the Companies Act 1956., contribution shall not exceed 7.5%. of the average net profits of the Company during the three immediately preceding financial years.
11.No approval of central government is required for entering into any related party transactions.
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