Background 1956 Act
– Outlived utility Entire old Act replaced by new Act Global changes
– move towards IFRS Need for greater accountability and responsibility
• By management
• By auditors Investor Protection Rule based Stress on avoidance of Corporate Fraud rather than detection Green Initiative – Books can be maintained in electronic form Encouragement to contribute for social cause
Steps towards IFRS
Already introduced Revised Schedule VI (IAS 1) – renamed as Schedule III .
Consolidated Financial Statements made mandatory .
Schedule II for Depreciation prescribes estimated useful life and Component Accounting.
Financial Statements includes Statement of Changes in Equity.
Free reserves excludes profits on account of fair value concept.
Enforcement powers and prescribing stringent penalties strengthened
Deleting the redundant provisions
Best Global practices
Segregation of procedural aspects from substantive law.
The control of the Central Government over internal corporate processes largely substituted by shareholder control.
Shareholders democracy recognized.
Reducing excessive intervention of the Central Government.
More mandatory disclosures.
Greater emphasis on protection of shareholder rights.
Various Rules notified
Specification of Definition Details
Incorporation Prospectus and Allotment of Securities
Issue of Global Depository Receipts Share Capital and Debentures
Acceptance of Deposits
Registration of Charges
Management and Administration
Declaration and Payment of Dividend
Accounts Audit and Auditors
Corporate Social Responsibility Policy
Appointment and Qualification of Directors
Various Rules notified
Meeting of Board and its powers
Appointment and Remuneration of Managerial Personnel Inspection,
Investigation and Inquiry
Authorized to Register Registration of Foreign Companies Registration of Offices and Fees Adjudication and Penalties Miscellaneous
Cost Records and Audit
SPECIFICATIONS AND DEFINITIONS DETAIL
• Defines various terms used under the Act
• DSC, DIN, EForm, Electronic Mail
• Electronic Mode – means carrying out electronically based – whether main server is located in India or not – Including :
a) B2B, B2C transactions. Data interchange and other digital supply transactions
b) Offering to accept deposits, subscriptions
c) Financial settlements, web based marketing, advisory and transactional services, data base services and products, supply chain management
d) Online services – telemarketing, telecommunications, telemedicine, education and information research
e) All related data communication services
• Conducted by email, mobile devices, social medial, cloud computing, document management, voice or data transmission.
RULES UNDER COMPANIES ACT 2013
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