The Indian Company Act Updates

Difference between the constitution of various committees to be constituted under SEBI (LODR) regulations 2015 and companies act 2013 1. Audit Committee Point Of Difference SEBI (LODR) Regulations 2015 The Company Act 2013 Members Minimum 3 Directors Minimum 3 Directors Independent Directors Min 2/3 rd of the total members should be Independent Directors Majority of members should be Independent Directors Financial Literacy All members should posses financial literacy and one should be expert of that Majority of members including Chairperson should be financial literate Chairperson Independent Director Act is silent Secretary Company Secretary Act is silent 2. Nomination & Remuneration Committee Point Of Difference SEBI (LODR) Regulations 2015 The Company Act

Frequently Traded Shares: As per Securities And Exchange Board Of India (Substantial Acquisition Of Shares And Takeovers) Regulations, 2011 Means shares of a target company, in which the traded turnover on any stock exchange during the 12 calendar months preceding the calendar month in which the public announcement is required to be made under these regulations is at least ten per cent of the total number of shares of such class of the target company; For example Public announcement has been made on February 5 th , 2019 then will see the traded turnover from February 1 st , 2018 to January 31 st , 2019. NSE and BSE always displayed the traded turnover of the listed company on their exchange. Provided that where the share capital of a particular class of shares of the target company is not identical throughout such period, the weighted average number of total shares of such class of the target company shall represent the total number of shares; In continuation of

Interim Finance Minister of India Mr. Piyush Goyal on Friday 01/02/2019 presented the Union Budget 2019  in Lok Sabha. The FM Said in his speech that: We have resolved many problems which were coming in the way of realising our full potential as a society and an economy. We are poised to become a Five Trillion Dollar Economy in the next five years and aspire to become a Ten Trillion Dollar Economy in the next 8 years thereafter. For detailed finance bill click here  https://www.indiabudget.gov.in/ub2019-20/fb/bill.pdf For Budget speech click here :  https://www.indiabudget.gov.in/ub2019-20/bs/bs.pdf The brief highlights of the union budget 2019 are as:  Individual taxpayers do not have to pay tax on annual income of Rs 5,00,000. If individual make investment in prescribe equity and provident fund then no need to pay tax on gross income of Rs 6,50,000 and many more: 1. Within 2 years, Tax assessment will be done electronically 2. IT returns processing

The government wants to know the information about  outstanding receipt of money or loan by a company but not considered as deposits, in terms of clause (c) of sub-rule 1 of rule 2 of  The Companies (Acceptance of Deposits) Rules 2014. Applicability:- Every Company except; 1. Government company, 2. Banking Company, 3. Non Banking financial Company, 4. Housing Finance Company. When the company will inform? The company will inform initially 2 times to ROC in form DPT-3 on following dates; 1.  As per rule 16(A)(3) of The Companies (Acceptance of Deposits) Rules 2014 o netime return of outstanding receipt of money or loan by a company but not considered as deposits, in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to the date of publication of this notification in the Official Gazette (i.e 22nd January 2019), as specified in Form DPT-3 within ninety days from the date of said publication of this notification along with fee as provided i