Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

Companies Law Committee submits report to Government

Suggestions include omitting provisions relating to forward dealing, insider trading.

  1. The Companies Law Committee — constituted in June 2015 to make recommendations on the issues related to implementation of the Companies Act, 2013.
  2. The recommendations including definitions, raising of capital, accounts and audit, corporate governance, managerial remuneration, companies incorporated outside India and offences/ penalties.
  3. Some key changes proposed are regarding managerial remuneration to be approved by shareholders.
  4. The modification of definition of associate company and subsidiary company.
  5. Companies may give loans to entities in which directors are interested after passing special resolution and adhering to disclosure requirement.
  6. Auditor will report on internal financial controls with regard to financial statements.

Leave a Reply

Please Login to comment
Notify of