The Union Ministry of Corporate Affairs on 27 May 2015 notified the Companies (Amendment) Act, 2014 in the Official Gazette.
The act received the assent of the President of India in early May 2015.
Sixteen amendments pertaining to winding up of companies, board resolutions, bail provisions and utilisation of unclaimed dividends have been incorporated into the Act by amending the Companies Act, 2013.
Some of the important provisions of the Companies (Amendment) Act, 2014 are
• It seeks to simplifying bail provisions. For instance, except in various issues of serious frauds, normal Criminal Procedure Code (CrPC) provisions would apply.
• To maintain the confidentiality of the board resolutions, the relevant amendment now prohibits public inspection of board resolutions filed in the registry.
• The paid-up capital criteria have been scrapped while threshold limits for various transactions for getting shareholders’ nod has now been stipulated.
• Specific punishment for deposits accepted, a condition that was left out in the Companies Act, 2013 inadvertently.
• Corporate are exempted from the need to get shareholders’ nod in the case of related party transactions valued lower than 100 crore rupees or 10 percent of net worth. Earlier corporate were required to get shareholders’ permission for party transactions valued more than 10 crore rupees.
• Transactions between holding companies and wholly owned subsidiaries are exempted from the requirement of approval of non-related shareholders.
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When: 27 May 2015