DIVESH GOYALMob: +918130757966 Practicing Company Secretarycsdiveshgoyal@gmail.com GOYAL DIVESH& ASSOCIATES Contact OnContact OnContact OnContact On csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com For Any Query Or Question Or Suggestions1 THE COMPANIES (AMENDMENT) ACT, 2015GOYAL DIVESH & ASSOCIATES,Practicing Company Secretary NewDelhi:TheRAJYARAJYARAJYARAJYASABHA SABHA SABHA SABHAon13thMay2015passedtheCompanies (Amendment)Bill,2014,whichprovidesforseverepunishmentforthoseraising illegal deposits from the public. The LOKSABHA LOKSABHA LOKSABHA LOKSABHA in2014passedtheCompanies(Amendment)Bill,2014,after CorporateAffairsMinister ArunJaitley toldthehousethatsomeoftheoriginal provisions were only posing hurdles to doing business in the country. TheCompanies(Amendment)BillreceivedtheassentofthePresidentonthe25th May,2015andpublishedinofficialGazetteofIndiaon26thMay,2015andbecame THE COMPANIES (AMENDMENT) ACT, 2015.ProvisionsofPoint1to12and15to23shallcomeintoforcefrom29thg May, 2015. Theproposedamendmentsdealwithrelatedpartytransactions,fraudreportingby auditors,publicinspectionofBoardresolutions,responsibilitiesofauditcommittee, restrictions on bail, making common seal optional, requirement for minimum paid-up share capital, strength of benches for hearing winding up cases, jurisdiction of special courts to try offences.TheCabinet,chairedbyPrimeMinisterNarendraModi,hadapprovedthe23 proposed changes invarious provisions of the new Companies Act, 2013, which came into force with effect from April 1, 2014. SERIES NO 82 82 82 82 DIVESH GOYALMob: +918130757966 Practicing Company Secretarycsdiveshgoyal@gmail.com GOYAL DIVESH& ASSOCIATES Contact OnContact OnContact OnContact On csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com For Any Query Or Question Or Suggestions2 SECTION SECTION SECTION SECTIONEARLIER PROVISION EARLIER PROVISION EARLIER PROVISION EARLIER PROVISIONPROVISIONS AFTER AMENDMENT PROVISIONS AFTER AMENDMENT PROVISIONS AFTER AMENDMENT PROVISIONS AFTER AMENDMENT 2 (68) PrivateCompanyrequired MinimumPaidupShare Capital of Rs 100,000/- NorequirementofMinimumPaidUp Capital. 2 (71) PublicCompanyrequired MinimumPaidupShare Capital of Rs 500,000/- NorequirementofMinimumPaidUp Capital. 9,12and 223 AffixationofCommonSeal is Mandatory UseofCommonSealisnowoptional.(Not Mandatory) 11 Commencement of BusinessNorequirementofCommencementof Business Certificate. Such section shall be omitted. 22 ExecutionofBillsof Exchange UseofCommonSealisnowoptional.(Not Mandatory) Ifcompanydoesnthavecommonsealthe authorizationundersubsection(2)of Section22shallbemadebytwodirectoror byadirectorandtheCompanySecretary, whereverthecompanyhasappointeda Company Secretary. 46 Issue of Share Certificate (46(1):Asharecertificate issueunderthecommonseal of Company{Clause substituted) UseofCommonSealisnowoptional.(Not Mandatory) Ifcompanydoesnthavecommonsealthen signed by twoDirectors or by adirector and Company secretary (if any) 76A This was not in the Act.New Section 76A inserted after Section 76 for punishment for deposits accepted in violation of the provisions of the said Act. (Bare Act Language of Section 76A given at the end) 117(3)(g) Publiccaninspecttheform MGT-14filedbythe Companiesaspersection 179(3)fortheBoard Resolution. PubliccantinspectsformMGT-14filedfor the purposes mention in section 179(3). {MGT-14 (filed for purpose of Section 179(3), BoardResolution)willnotavailablefor DIVESH GOYALMob: +918130757966 Practicing Company Secretarycsdiveshgoyal@gmail.com GOYAL DIVESH& ASSOCIATES Contact OnContact OnContact OnContact On csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com For Any Query Or Question Or Suggestions3 public inspection on MCA portal.} 123(1)This was not in the Act.Afterthethirdprovisoof123(1),the following proviso is inserted. Proviso,Nocompanyshalldeclaredividend unlesscarriedoverpreviouslossesand depreciation not provided in previous year or yearsaresetoffagainstprofitofthe company for the current year. 124(6) Unpaid or unclaimed dividend has been transferred under sub-section (5) Substituted (i) for the words, brackets and figure unpaid orunclaimeddividendhasbeentransferred undersub-section(5)shallalsobe,the wordsdividendhasnotbeenpaidor claimed for seven consecutive years or more (ii)aftertheproviso,thefollowing explanation shall be inserted, namely: Explanation.Incaseanydividendispaid orclaimedforanyyearduringthesaid periodofsevenconsecutiveyears,theshare shallnotbetransferredtoInvestor Education and Protection Fund.. 134(3) Not Earlier in the Act.AfterClausecfollowingclause(ca)is inserted: Detailsinrespectoffraudsreportedby auditorsundersub-section(12)ofsection143 other than those which are reportable to theother than those which are reportable to theother than those which are reportable to theother than those which are reportable to the Central Government Central Government Central Government Central Government 143(12) TheActrequiresthatifthe auditorofacompanyhas reasontobelievethatan offenceoffraudhasbeen committedagainstthe company,byitsemployees, hemustreportthematterto thecentralgovernment withinatimeperiodandina manner prescribed Notwithstandinganythingcontainedinthis section,ifanyauditorofacompanyinthe courseoftheperformanceofhisdutiesas auditor, has reason to believe that an offence offraudinvolvingsuchamountoramounts asmaybeprescribed,isbeingorhasbeen committedinthecompanybyitsofficersor employees,theauditorshallreportthe mattertothecentralgovernmentwithin suchtimeandinsuchmannerasmaybe prescribed: DIVESH GOYALMob: +918130757966 Practicing Company Secretarycsdiveshgoyal@gmail.com GOYAL DIVESH& ASSOCIATES Contact OnContact OnContact OnContact On csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com For Any Query Or Question Or Suggestions4 Providedthatincaseofafraudinvolving lesserthanthespecifiedamount,theauditor shallreportthemattertotheaudit committee constituted under section 177 or to theBoardinothercaseswithinsuchtime and in such manner as may be prescribed: Providedfurtherthatthecompanieswhose auditorshavereportedfraudsunder subsection12to theAuditCommitteeorthe BoardbutnotreportedtotheCentral Government,shalldiscloseddetailsabout suchfraudsintheBoardReportinsuch manner as may be prescribed. 117(4)(iv) EveryAuditCommitteeshall actinaccordancewiththe terms of reference specified in writingbytheBoardwhich shall inter alia include (iv)approvalorany subsequentmodificationof transactionoftheCompany with Related Party After 117(4)(iv) following proviso added: ProvidedthattheAuditCommitteemay makeomnibusapprovalforrelatedparty transactionproposedtobeenteredintoby thecompanysubjecttosuchconditionsas may be prescribed 185 Not Earlier in the Act. BareActLanguageofSection 185(1)(b):Acompanywhich intheordinarycourseofits businessprovidesloansor givesguaranteesorsecurities fortheduerepaymentofany loanandinrespectofsuch loananinterestinchargedat aratenotlessthanthebank rate declared by the RBI. Afterclause(b)SubSection(1)ofSection 185 following clause and proviso added: (c)AnyloanmadebyaHoldingCompany toitsWhollyownSubsidiaryCompanyor anyguaranteegivenorsecurityprovidedby aHoldingCompanyinrespectofanyloan madetoitswhollyownsubsidiary Company, (d) Any guarantee given or security provided byaHoldingCompanyinrespectofLoan made by any Bank or financial institution to its subsidiary Company Providedthattheloanmadeunderclauses (c)and(d)areutilizedbythesubsidiary company for its principal business activity. DIVESH GOYALMob: +918130757966 Practicing Company Secretarycsdiveshgoyal@gmail.com GOYAL DIVESH& ASSOCIATES Contact OnContact OnContact OnContact On csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com For Any Query Or Question Or Suggestions5 188(1) Earlier Special Resolution was required.Ifcompanycross the threshold limit.) ForthewordSpecialResolutiontheword Resolution is substituted under the Act. Now Ordinary resolution will work. 188(1) Not Earlier in the Act.NotrequiredtofollowprovisionofSection 188.AfterthethirdprovisoofSection188(1) the following proviso inserted: Providedalsothatthattherequirementof passing the resolution under the first proviso shallnotbeapplicablefortransactions enteredbetweenaholdingcompanyandits wholly owned subsidiary whose accounts are consolidated with such holding company and havebeenplacedbeforetheshareholdersfor their approval 212(6) Investigationintoaffairsof CompanybySeriousFraud Investigation office Here provided Bail restriction for many sections. Thebailrestrictionstoapplyonlyfor offence relating to fraud u/s 447; 419(4) InSection419(4)windingup was mentioned The word WINDING UP shall be omitted. 435EstablishmentofSpecial CourtsEstablishmentof Special Courts. TheCentralGovt.mayfor thepurposeofproviding speedy(Trialofoffences under this Act), established or designateasmanySpecial Courts as may be necessary. FortheWordsTrialofOffencesunder ThisAct,Thewords TrialofoffencespunishableunderthisAct withimprisonmentwith2yearsormoreis substituted. After Sub Clause (1) the following proviso is inserted: Providedthatallotheroffencesshallbe tried,asthecasemaybebyametropolitan MagistrateoraJudicialMagistrateofthe firstclasshavingjurisdictiontotryany offence under this Act or under any pervious Company Law.436 OffenceTriablebyspecial courts Section 436(1)(a) Forthewords"alloffencesunderthisAct", thewords,bracketsandfigures"alloffences specified under sub-section (1) of section 435" shall be substituted DIVESH GOYALMob: +918130757966 Practicing Company Secretarycsdiveshgoyal@gmail.com GOYAL DIVESH& ASSOCIATES Contact OnContact OnContact OnContact On csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com For Any Query Or Question Or Suggestions6 Section 435(1) given below. 462 Subsection{2,3and4of Section462)shallbe substituted. SubstitutedlanguageofSection462(2),(3) and (4) given below. 76A. Punishment for contravention of section 73 or section 76: Where a company accepts or invites or allows or causes any other person to accept or invite on its behalf any deposit in contravention of the matter or the conditions prescribed under section 73orsection76orrulesmadethereunderorifacompanyfailstorepaythedepositorpart thereof or any interest due thereon within the time specified under section 73 or section 76 or rules made there under or such further time as may be allowed by the Tribunal under Section 73,- (a)The company shall, in addition to the payment of the amount t of deposit or part thereof andtheinterestdue,bepunishablewithfinewhichshallnotbelessthanonecrore rupees but which may extend to ten crore rupees; and (b) Every officer of the company who is in default shall be punishable withimprisonment which may extend to seven years or with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees, or with both. Provided that if it is proved that the officer of the company who is in default, has contravened suchprovisionsKnowinglyorwillfullywiththeintentiontodeceivethecompanyorits shareholdersordepositorsorcreditorsortaxauthorities,heshallbeliableforactionunder section 447. 435 (1). Establishment of Special Courts. The Central Govt. may for the purpose of providing speedy (Trial of offences punishable under thisActwithimprisonmentwith2yearsormoreissubstituted),establishedordesignateas many Special Courts as may be necessary. DIVESH GOYALMob: +918130757966 Practicing Company Secretarycsdiveshgoyal@gmail.com GOYAL DIVESH& ASSOCIATES Contact OnContact OnContact OnContact On csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com csdiveshgoyal@gmail.com For Any Query Or Question Or Suggestions7 Provided that all other offences shall be tried, as the case may be by a metropolitan Magistrate or a Judicial Magistrate of the first class having jurisdiction to try any offence under this Act or under any pervious Company Law. 462:Power to exempt class or classes of companies from provisions of this Act: (2)Acopyofeverynotificationproposedtobeissuedundersub-section(1),shallbelaidin draft before each House of Parliament, while it is in session, for a total period of 30 days, and if, both Houses agree in disapproving the issue of notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified from as may be agreed upon by both the Houses. (3)Inreckoninganysuchperiodof30daysasisreferredtoinsub-section(2),noaccount shall be taken of any period during which the House referred to in sub-section(2) is prorogued or adjourned for more than for consecutive days. (4)Thecopiesofeverynotificationissuedunderthissectionshall,assoonasmaybeafterit has been issued, be laid before each House of Parliament:.