|
S. No.
|
Exemption and Interpretation
|
Section
|
Date of Applicability
|
|
1.
|
DEFINITION OF RELATED
PARTY RELAXED
WITH RESPECT TO SECTION 188:
Related Party does
not include
Holding, Subsidiary, Associate
Company
and
sister
concern (subsidiary of holding). Transactions
entered with them and falling under section 188 does not require compliance of section 188.
Note: Although Holding
company is excluded but Director
(other than independent Director), KMP of
holding company or their
relative
are still included in definition of Related Party.
(Section 2(76)(ix)).
|
2(76)(viii)
|
From 05.06.2015 till now
|
|
2.
|
TIME LIMITS IN RIGHT ISSUE
CAN BE REDUCED:
Sending of offer
letter minimum 3 days period
before opening of
offer AND Minimum & maximum
offer period of
15 & 30 days respectively. In
case of emergency,
the mentioned time limits can be
reduced with the consent
of 90% of shareholders give their consent in writing/electronic mode.
Note: The time limits cannot be increased,
they
can
only
be reduced.
|
62(1)(a)
&
62(2)
|
From 05.06.2015 till now
|
|
3.
|
ACCEPTANCE OF DEPOSITS FROM MEMBERS MADE EASIER FOR CERTAIN
PRIVATE COMPANIES:
Private Companies borrowing monies
from members up to aggregate
limit of paid-up share
capital & free-reserves need
not require to comply
with
conditions mentioned in section
73(2)(a) to (e). However
details of money so borrowed shall
be
filed with ROC in manner as may be specified.
If Such Company borrows money from member
then no need
to:
· Issue Circular
· File
circular with
ROC
· Maintain Deposit repaymentreserve
· Provide deposit insurance
|
73(2) (a) to (e)
|
From 05.06.2015 till now
|
|
4.
|
NO NEED TO FILE MGT-14 FOR BOARD
RESOLUTIONS:
Any Board
resolution mentioned in section 179 (3) read
with rule 8 of Companies (Meeting of Board
&
its
power) Rules,
2014 is now not required to be filed with ROC.
Note: This will reduce compliance for the companies.
But there are certain resolutions which need to be filed
with ROC. This
is not a blanket exemption.
|
117(3)(g)
|
From 05.06.2015 till now
|
|
5.
|
ARTICLES OF A
PRIVATE COMPANY MAY
OVERRIDE PROVISIONS PERTAINING TO:
1.
Content & length of notice
2.
Explanatory Statement
3.
Quorum
4.
Chairman
5.
Proxies
6.
Restriction on voting
rights
7.
Show
of hands & Poll
Private Company Cannot:
1.
Reduce quorum
below 2
(In re- Ram Villas Press
Publication Pvt. Ltd- Kerala
HC)
2. Increase time limit of
48
hours
for
depositing proxy
form (Section 105(4))
3. Reject a proxy
form
if
it
fails
to
comply
with
specific requirement of AOA (Section 105(7))
4.
Restrict voting right of a member
other than restrictions
in section 106(section 106(2))
|
101 to 107
&
109
|
From 05.06.2015 till now
|
|
6.
|
MAXIMUM NUMBER
OF AUDIT IN CASE OF PRIVATE COMPANY RELAXED:
Limit of 20 Companies only includes:-
1.
Public Companies
2.
Private Companies having paid up capital
of Rs. 100 crore or
more.
|
141(3)(g)
|
From 05.06.2015 till now
|
|
7.
|
CANDIDATURE NOT REQUIRED FOR APPOINTMENT OF DIRECTOR AT GENERAL
MEETING:
Amount
of Rs. 1 lakh not required
to be deposited at least 14
days before GM.
|
160
|
From 05.06.2015 till now
|
|
8.
|
APPOINTMENT OF
DIRECTORS NEED
NOT
TO
BE VOTED
INDIVIDUALLY:
More than 1 director can be appointed
via single resolution.
|
162
|
From 05.06.2015 till now
|
|
9.
|
RESTRICTIONS ON POWERS OF BOARD NOT TO APPLY:
Private
Company can now without
shareholder’s approval:
1.
Borrow exceeding paid up capital
& free reserves.
2.
Sell/lease/dispose of undertaking.
|
180
|
From 05.06.2015 till now
|
|
10.
|
INTRESTED DIRECTOR
CAN PARTICIPATE IN BOARD MEETING AFTER DISCLOSURE OF INTEREST:
Interested
Director can now participate in agenda
in which he
is interested.
Note: He Cannot be counted
in Quorum (Section 174(3)
explanation).
|
184
|
From 05.06.2015 till now
|
|
11.
|
LOANS/GUARANTEE/SECURITY CAN BE GIVEN TO DIRECTOR AND PERSON IN WHOM HE IS INTERETED BY CERTAIN
PRIVATE COMPANIES:
A private Company which
has:
1.
No
Body Corporate
Shareholder
2. Not borrowed money from Bank/
Financial
Institution/ Body Corporate exceeding lower of the following:
i. Twice its Paid up capital
ii.
Rs.
50 crore
3. No
repayment default
subsisting
of such borrowings at time of giving loan
Note: Giving loans/ guarantee/security
to Group
Companies now possible.
|
185
|
From 05.06.2015 till now
|
|
12.
|
RESTRICTION ON VOTING RIGHT IN GENERAL MEETING IN CASE OF RELATED PARTY
TRANSACTION NOT APPLICABLE:
Member although being related party
to the concerned
resolution can still
cast his vote at GM.
|
188(1) 2nd proviso
|
From 05.06.2015 till now
|
|
13.
|
SHAREHOLDER’S RATIFICATION NOT
REQUIRED FOR
APPOINTMENT OF MD/WTD:
1. Shareholder’s Ratification in not required.
2.
Schedule V not applicable.
3.
MR-1
not required to be filed
4.
T&C of appointment, remuneration not mandatory to be mentioned in Resolution.
|
196(4) &(5)
|
From 05.06.2015 till now
|
|
14
|
OMISSION OF REQUIREMENT OF MINIMUM SHARE CAPITAL:
No minimum paid
up share capital
is prescribed under
the act now. A Private limited
can be formed
with any paid
up share capital.
|
2(68)
|
From 25.05.2015 till now
|
|
15
|
REMOVAL OF COMMON SEAL:
The requirement of
common seal
has been replaced with the signature of directors.
|
9, 12, 22 and 46
|
From 25.05.2015 till now
|
|
16
|
LOAN FROM DIRECTOR OR HIS RELATIVES:
Loan is allowed from
the director
and its relative without any limit subject to the Loan is given from his own funds.
|
73, 76
|
From 15.09.2015
till now
|
Company Secretary GAURAV SHARMA+919990694230 Connect on Watts App with Gaurav Email us [email protected] Official Blog Fema India Experts Connect with our Facebook Page:- Click and Like our Page Subscribe our Email updates like other 13,300 Members, Free/Easy/Comfortableway
