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The Companies Act 2013 comes into force from 1-April-2014 for the Indian corporate. There are sea changes brought in this Act from the earlier one. Let's have a quick browse on the checklist: WHAT COMPANIES WILL HAVE TO DO? IMMEDIATELY Devise and implement policies on corporate social responsibility and vigil mechanism (if any one of the criteria satisfied ~ networth of Rs.500 crore or more, turnover of Rs. 1,000 crore or more, a net profit of Rs. 5 crore or more during any financial year) Finalise a new code for independent directors and identify and notify the related parties to their respective accounts departments Print new stationery, bills, etc, with name, address of the registered office, Company Identification No. (CIN) , telephone, fax, email and website File returns with the Registrar of Companies on changes in top 10 shareholders Get certificate of independence from directors Maintain register of key management personnel (KMP) WITHIN THREE MONTHS Fil...

Niall Fitzerald, Former CEO, Unilever once said that “Corporate Social Responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it because it is good for our business. The Companies Act 2013 requires that every company (private/ public unlisted / listed) with Networth of ≥ INR 500 crore (5 billion) or Turnover of ≥ INR 1,000 crore (10 billion) or Net profit of ≥ INR 5 crore (50 million) during the financial year will constitute a CSR Board committee (CSRC). The board will ensure that company spends, in every financial year, at least 2% of its average net profits during the immediately preceding 3 years, in pursuance of CSR policy. The CSR committee will consists of 3 or more directors with atleast 1 independent director. The Board’s report should disclose the composition of CSRC. The board will approve the CSR policy and disclose its contents in the board report and place it on the company’s website. If...

ANALYSIS OF THE NEW COMPANIES  BILL 2012   RELIANCE INDUSTRIES LTD Posted by ~ Er Tejas Somaiya Prelude The Companies Bill 2011 was laid before the Parliament in December 2011 and was referred to Parliament Standing Committee on Finance. The Standing Committee submitted its report in June 2012 and based on Standing Committee's report, the Companies Bill 2011 was amended and was introduced as the new Companies Bill, 2012. The Bill was passed by the Lower House of Parliament on 18th December 2012. The Bill is pending the Upper House of Parliament-the Rajya Sabha and therefore, may undergo further changes. The Bill is divided into 29 chapters and contains 470 clauses as against 658 sections in the existing Companies Act, 1956. Corporate Governance:   Concept of Independent Directors ("ID") has been introduced for the first time in Company Law. Some of the important points relating to IDs are mentioned below: Maximum number of direct...