NEW COMPANY BILL 2012 AMENDMENT 1. Incorporation of a One Person Company has been permitted. 2. Numbers of permissible members in private company has been raised to 200 as against existing limit of 50 members. 3. Listed companies shall have at least 1/3 rd of the total number of directors as Independent Directors and the Central Government may prescribe the minimum number of Independent Directors for any class of public companies. 4. Nominee director cannot be regarded as Independent Director. 5. Maximum term of ID has been restricted to five years at once subject to a maximum of two such terms. 6. Appointment of at least one woman director on the board of prescribed classes of companies has been made mandatory. 7. Appointment of at least one director resident in India, i.e. a director who has stayed in India for at least 182 days in the previous calendar year, is made mandatory for all companies. 8. Maximum number of directors has been increased from twelve (12) to fifteen (15) directors .Further no Central Government approval is required to increase the maximum no. of directors beyond fifteen(15). Shareholders of companies may do so by passing a special resolution. 9. A person can hold directorship of up to 20 companies, of which not more than 10 can be public companies. 10. No listed companies shall appoint- i. an individual as auditor for more than one term of five consecutive years, and ii. an audit firm as auditor for more than two terms of five consecutive years 11. Shareholders are at liberty to decide by passing resolution that audit partner and the audit team, be rotated every year 12. CSR has been made mandatory for a company having net worth of Rs. 500 crore or more, or turnover of Rs.1,000 crore or more or net profit of Rs. 5 crore or more during any financial year.
Posted on: Tue, 20 Aug 2013 23:14:08 +0000