India Companies Act- 98 Sections of the New Companies Act Notified
(Sunnyvale, CA) - The Ministry of Company Affairs (MCA) has notified 98 sections of the new law which is spreadover 470 sections on 12th September, 2013. The remaining sections of the Companies Act, 2013, will be enforcedin phases.Important definitions that have come into force include:
Chief Executive Officer
Chief Financial Officer
Private Limited Company (Such companies can now have up to 200 members)
Public Limited Company
Employees’ Stock Option
Global Depository Receipt
Key Managerial PersonnelSignificant highlights of the key provisions of various sections that have come into force include:
Appointment of additional directors:
If the articles of association of a company permit, the Board of Directors can employ an additional director. However, such candidate should not have failed to getappointed as a director in a general meeting. Such person will be able to hold office up to the followingannual general meeting or the last date, on which the yearly annual general meeting would be held,whichever is earlier.
New widened restrictions on loans to directors.
Restrictions on non-cash transactions involving directors.
Provisions pertaining to quorum in general meetings. Unless the articles of the company provide for a largernumber
, certain numbers of members need to personally attend meetings, if the totalnumber of members as per the meeting date are as follows:
If there are up to 1000 members: At least 5 members.
If there are more than 1000 but less than 5000 members: At least 15 members.
If there are more than 5000 members: At least 30 members.