The Companies
Bill, 2012 was passed by Lok Sabha on the 18th of December 2012. The following
are a few highlights from the same.
The objectives
kept in mind while drafting the Companies Bill were:
·
Protecting the
interests of Employees and Small Investors
·
Voluntary
adoption of Social Welfare Schemes
·
Clearing
cumbersome procedures and making India an attractive and safe destination for
Investment
Differences between the Companies Bill, 2012
and the Companies Act, 1956:
·
Introduction of
“One Person Company” concept
·
More powers
conferred upon the Serious Fraud Investigation Office (SFIO) to
tackle issues of corporate frauds.
·
Setting up of
special courts for speedy trials, thereby assuring quick relief to investors.
·
Corporate Social
Responsibility mandated through a statutory provision. The Companies Bill is
said to make CSR spending compulsory for companies that meet certain criteria.
·
Annual
ratification of appointment of Auditors for 5 years, i.e. every company will be
required to mandatorily obtain the consent of its shareholders every year in
order to continue with its auditors.
·
Limits the number
of companies an auditor can serve to 20, while also increasing the
criminal liability of auditors.
·
New Clause has
been inserted related to offence of falsely inducing banks for obtaining
credit.
·
Companies are
allowed to have only two layers of subsidiaries for investment.
·
Companies are
encouraged to create Employees’ Welfare Fund
·
Whistle
Blower policies and Class Action Suites are other areas brought
into light.
