Provisions of New Companies Bill

                       Provisions Under New Companies Bills 2013 

Under the new Companies Bill some major changes have been made since the bill is yet under the consideration of the president of India so the brief scenario is available. There are some major changes which have been made by the new Companies Bills, are as follows:-

Number of members:

In the new Companies Bill the number of members of Private company has been changed so now it is 200 in the earlier bill it used to be 50.

Number of Directors:

The Minimum Number of Directors in regard with Public Company is Three  and in case of Private Company it is Two.

Woman Director:

Under the new Bill there is also a provision for Woman director.  Bill has added a clause in which one woman director is require to be on the board  of such class or classes of companies as may be prescribed.

Resident Director:

In the New bill it is mentioned that in every company there should be one Resident Director who has stayed in India not less than "One Hundred and Eight-two days" in the previous calendar year.

 Key Managerial Person (KMP):

Key Managerial Person i.e. KMP includes "The Chief Executive Officer" or "Managing Director" or "Manager" and it also includes "Company Secretary (C.S)" , "Full- Time Director", "The Chief Financial Officer".

Concept of Dormant Companies:

                 In the present bill there are some provisions in regard with Dormant Company  which says that Dormant Company formed under this Act for the future projects or to hold an assent or intellectual property and has no Significant Accounting Transactions".

     In  the new Companies Bill significant transaction means the transaction other than-

·         Payment of fees by the company to the Registrar,

·         Payments made by it to fulfill the requirements of this act or any other Law.

·         Allotment of shares to fulfill the requirements of this act; and

·         Payments for maintenance of its office and record.

And as per the current bill a Dormant Company is require to conduct two meetings in a year.

Concept of Foreign Company:

foreign company means a  "company  incorporated outside India and has a place of business in India through an agent (agent could be a Human Being or any medium of Electronic Mode).

Board Meeting:

Seven days' prior notice is require  to give for the Conduct of Board Meeting and the notice can be send through the Electronic means to every director at his respective registered address.

Annual General Meeting (AGM)

The first AGM should be held within a period of Nine months and one  more notable thing which says that meetings cannot be held on National Holidays.

Some other Important Changes are as follows:

·       Members are allowed to vote at meetings by Electronic Means.

·       Postal Ballot provisions will be applicable to all companies.

·       In the current bill video conference or other Audio-Visuals are permitted. The director's participants through the video conferencing\other Audio-Visuals means will be counted for quorum.

·      E- voting clause is also brought up by the new Companies Bill.