Share
 
Comments

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the introduction of the Companies (Amendment) Bill, 2014 in Parliament to make certain amendments in the Companies Act, 2013. 

The Companies Act, 2013 (Act) was notified on 29.8.2013. Out of 470 sections in the Act, 283 sections and 22 sets of Rules corresponding to such sections have so far been brought into force. In order to address some issues raised by stakeholders such as Chartered Accountants and professionals, following amendments in the Act have been proposed: 

1. Omitting requirement for minimum paid up share capital, and consequential changes. (For ease of doing business) 

2. Making common seal optional, and consequential changes for authorization for execution of documents. (For ease of doing business) 

3. Prescribing specific punishment for deposits accepted under the new Act. This was left out in the Act inadvertently. (To remove an omission) 

4. Prohibiting public inspection of Board resolutions filed in the Registry. (To meet corporate demand) 

5. Including provision for writing off past losses/depreciation before declaring dividend for the year. This was missed in the Act but included in the Rules. 

6. Rectifying the requirement of transferring equity shares for which unclaimed/unpaid dividend has been transferred to the IEPF even though subsequent dividend(s) has been claimed. (To meet corporate demand) 

7. Enabling provisions to prescribe thresholds beyond which fraud shall be reported to the Central Government (below the threshold, it will be reported to the Audit Committee). Disclosures for the latter category also to be made in the Board’s Report. (Demand of auditors) 

8. Exemption u/s 185 (Loans to Directors) provided for loans to wholly owned subsidiaries and guarantees/securities on loans taken from banks by subsidiaries. (This was provided under the Rules but being included in the Act as a matter of abundant caution). 

9. Empowering Audit Committee to give omnibus approvals for related party transactions on annual basis. (Align with SEBI policy and increase ease of doing business) 

10. Replacing ‘special resolution’ with ‘ordinary resolution’ for approval of related party transactions by non-related shareholders. (Meet problems faced by large stakeholders who are related parties) 

11. Exempt related party transactions between holding companies and wholly owned subsidiaries from the requirement of approval of non-related shareholders. (corporate demand) 

12. Bail restrictions to apply only for offence relating to fraud u/s 447. (Though earlier provision is mitigated, concession is made to Law Ministry & ED) 

13. Winding Up cases to be heard by 2-member Bench instead of a 3-member Bench. (Removal of an inadvertent error) 

14. Special Courts to try only offences carrying imprisonment of two years or more. (To let magistrate try minor violations).

Modi Govt's #7YearsOfSeva
Explore More
It is now time to leave the 'Chalta Hai' attitude & think of 'Badal Sakta Hai': PM Modi

Popular Speeches

It is now time to leave the 'Chalta Hai' attitude & think of 'Badal Sakta Hai': PM Modi
India's total FDI inflow rises 38% year-on-year to $6.24 billion in April

Media Coverage

India's total FDI inflow rises 38% year-on-year to $6.24 billion in April
...

Nm on the go

Always be the first to hear from the PM. Get the App Now!
...
MoS Dr. Jitendra Singh’s Statement after meeting with the political parties of Jammu-Kashmir under the leadership of the Hon'ble Prime Minister
June 24, 2021
Share
 
Comments

A discussion with the political parties of Jammu-Kashmir under the leadership of the Hon'ble Prime Minister has just ended. This has been a very positive effort towards the development and strengthening of democracy in Jammu-Kashmir. The meeting took place in a very cordial atmosphere. All the participants expressed their full allegiance to the democracy of India and the Constitution of India.

The Home Minister apprised all the leaders of the improvement in the situation in Jammu-Kashmir.

The Prime Minister listened to every party’s arguments and suggestions with all seriousness and he appreciated the fact that all the people's representatives shared their point of view with an open mind. The Prime Minister laid special emphasis on two important issues in the meeting. He said that we all have to work together to take democracy to the grassroots in Jammu-Kashmir. Secondly, there should be all-round development in Jammu-Kashmir and development should reach every region and every community. It is necessary that there should be an atmosphere of cooperation and public participation.

Hon'ble Prime Minister also pointed out that elections to Panchayati Raj and other local bodies have been successfully held in Jammu-Kashmir. There is improvement in the security situation. About 12,000 crore rupees have directly reached the panchayats after the conclusion of elections. This has accelerated the pace of development in the villages.

The Prime Minister said that we have to approach the next important step related to the democratic process in Jammu-Kashmir i.e. assembly elections. The process of delimitation has to be completed expeditiously so that every region and every section gets adequate political representation in the assembly. It is necessary to give a proper representation to the Dalits, backwards and people living in tribal areas.

There was a detailed discussion in the meeting regarding the participation of everybody in the process of delimitation. All the parties present in the meeting have agreed to participate in this process.

The Prime Minister also emphasized the cooperation of all the stakeholders to take Jammu-Kashmir on the path of peace and prosperity. He said that Jammu-Kashmir is moving out of the vicious circle of violence and moving towards stability. New hope and new confidence have emerged among the people of Jammu-Kashmir.

The PM also said that we will have to work day and night to strengthen this trust and work together to improve this confidence. Today's meeting is an important step for strengthening the democracy and the development and prosperity of Jammu-Kashmir. I thank all the political parties for attending today's meeting.

Thanks