Discover Highlights of Indian Companies (Amendment) Act, 2015!
The key highlights of the recently passed Companies (Amendment) Act of 2015 are presented here, to help the concerned people and companies of India and abroad. Published in the Official Gazette on 26th May 2015 with effect since, this amendment Act has made many changes.
New Delhi, India, December 13, 2015 (Newswire.com) - The Indian Companies (Amendment) Act of 2015, which came into force since 26th May 2015, has made many significant changes in provisions and regulations of the existing Indian Companies Act of 2013, in order to make businesses/professions in India easier, safer, and more profitable to the concerned people and investors. These promulgated changes relate to many matters and issues associated with the establishment of companies and corporate governance, and include the following key topics: -
* No Minimum Paid-Up Share Capital: --- Now, to set up a private and public limited company, one does not compulsorily require the minimum paid-up share capital of Rupees One Lac and Rupees Five Lac, respectively.
* No Need to get the Certificate of Business Commencement: --- Hence, one is now not required to file the Form INC-21 with the relevant ROC.
* Common Seal is Optional: --- Now, in place of the common seal of the company, the signature(s) of any two directors or one director and a company secretary, can also be used optionally.
* Penalties against Non-Compliance with the Rules related with Public Deposits: --- Certain rigorous penalties and fines are introduced (under section 76A) by this amendment Act, against non-compliance with the rules and regulations concerned with public deposits, given in the Sections 73 and 76 of the CA-2013.
* Board Resolutions not Accessible: --- To preserve confidentiality, the Board Resolutions of the companies filed with MCA through Form MGT-14, are now made inaccessible on the MCA Portal.
* No Dividends from Companies at Losses: --- Now, dividends cannot be declared by companies at losses or with negative reserves.
* Clarified are Conditional Loans to Subsidiary Company from the Holding Company: --- Under the conditions mentioned in Section 185 (c to d), a holding company can give loans/guarantees to the subsidiary company.
To get more information about the changes made by this Amendment Act of 2015, or avail swift and expert company law services, interested people/companies may get more info at