The Companies Act, 2013 which
replaces the Companies
Act, 1956 incorporates various provisions aimed at strengthening
of corporate governance in companies in India. These provisions include,
interalia, enhanced responsibilities for the Board and
its committees like the Audit Committee and Nomination and Remuneration
Committee,
enhanced
disclosures
to stakeholders, appointment of Independent Directors, stricter norms for ensuring
independence and accountability of auditors and greater level of investor protection.
The Indian Accounting Standards (Ind AS) have also been notified
in February 2015, and are expected to contribute to improved corporate
governance. The number of
activities under Corporate
Social Responsibility has also been expanded. Further, Companies Act, 2013 has been amended to do away with mandatory requirement of minimum paid up capital for companies, common
seal for companies and the requirement of filing declaration of commencement of business with a view to facilitate doing business using company as a vehicle.
Incorporation process for a company
has been simplified through the introduction of an integrated eform INC29, amongst other steps.
This information was given by Shri Arun Jaitley, Minister
of Corporate Affairs
in written reply to a question in the Lok sabha.
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