MOST IMPORTANT & RECENT Changes by Companies Amendment Act 2017 FOR PROFESSIONALS AND OTHERS-

MOST IMPORTANT & RECENT Changes by Companies Amendment Act 2017 FOR PROFESSIONALS AND OTHERS-

• In case of Incorporation, Name shall be reserved for 20 days from the date of Approval instead of 60 days from the date from the date of application.
• Objects of the Company can state that the company will do any lawful activity or business without giving any specific object
• For registration of a Company 'Declarations' will be required instead of Affidavits.
• Partnership Firm, LLP, Societies etc. may convert itself into a Private Company with 2 or more members only. (Earlier at least 7 members was required)
• In addition to Nidhi Companies, Mutual Benefit Society can also be registered under Chapter XXVI of the Act.
• Notice of every change of shifting of Registered Office (E-Form INC-22) is now required to file with ROC within 30 days instead of 15 days.
• Sweat Equity Shares can now be issued at anytime, hence no need to wait for one year from commencement of business.
• In addition to Directors and KMP, any employee can also authenticate documents.
• Officers not more than one level below the Directors who are in full time employment of the Company can also be designated as KMP.
• CSR from now onwards shall also apply to Foreign Companies with such exceptions as may be prescribed.
• For CSR Net worth/ Turnover/ Net Profit shall be considered for immediately preceding Financial Year instead of 3 preceding year.
• Form MGT-10 with respect to change in promoters and 10 top ten shareholders shareholding is not required to file with ROC.
• Now Central Government can provide any other number to be treated as DIN.
• From now onwards every Company to have at least One Resident Directors who stays in India for a total period of 180 days during the Financial Year instead of Calendar Year.
• Central Government approval is no more required for payment of remuneration in excess of 11% of net profits. It means it can be passed by passing Ordinary Resolution.
• If an appointment of Independent Director or Director is nominated by Nomination and Remuneration Committee then it is not required to deposit Rs. 1Lakh w.r.t to Nomination of such Director.
• Director shall not be disqualified u/s 164 (2) for a period of 6 months from the date of his appointment.
• If a Director is disqualified u/s 164 (2)  of Companies Act, 2013 then he will to vacate his office from All Companies except that the Company which is in default.
•  Filing requirement of Form DIR-11 for resignation of Director is now Optional.

DOWNLOAD BIFURCATION ON REVIEW STANDARDS POINTS FOR CA FINAL&IPCC.

 SOME OTHER Changes by Companies Amendment Act 2017

• Ratification of Appointment of Auditor at every Annual General Meeting is not compulsory.
• Associate company of a company incorporated outside India can also apply to the Tribunal for a different financial year
• Form MGt-14 with respect to section 180 (1) (a) and (c) is not required to filed with ROC.
• Annual General Meeting of Unlisted Company may be held at any place in India if the consent is received in advance from all the members.
• Abridged version of Annual Return for OPC & Small companies shall be prescribed.
• Extract of the Annual Return (MGT-9) now can be placed on the website of the Company.
• Disclosures included in Financial Statements already, need not to be repeated in Board Report.
• From now onwards CEO of the Company shall sign the Financial Statements of the Company.
• Financial Statements for Joint Ventures shall not be Consolidated with the Financial Statements of the Company.
• Wholly owned subsidy of foreign Company can hold EGM outside India also.
• Now there are no restrictions on Companies to invest with respect to layers on Investment Companies.
• subject to maximum of Rs. 25 Lacspenalty of Rs. 1000 per dayIf Company defaults in filing of Return of Allotment (PAS-3) beyond 15 days then Co., its promoters and Directors are liable to pay
• Private Placement is to be made to 'Identified Persons' (Board shall identify the same).
• New format for Private Placement offer-cum application may be issued by the Government.
• Amount received under private placement shall not be utilized unless the return of Allotment is filed with the ROC.
• Return of Allotment (PAS-3) shall be filed within 15 days of Allotment instead of 30 days.