Highlights of the Companies Bill 2012

Rajya Sabha passed the Companies Bill, 2012 on 8th August, 2013. It was earlier passed by Lok Sabha on December 18, 2012. Now it will be presented before the President for approval after which it will come into force.

 

The new Law will be a progressive and futuristic law which promises improved corporate governance norms, enhanced disclosures and transparency, facilitation of responsible entrepreneurship, increased accountability of company managements and auditors, protection of interest of investors particularly small and minority investors, better shareholder democracy, facilitation of corporate social responsibility (CSR) and stricter enforcement processes.

 

One of the Key features of this Act is introduction of the “One Person Company” where  an Individual can set up a One Person Company.

The new law also envisages Company Secretaries as Governance Professionals by recognizing them as Key Managerial Persons in a Company along with the Chief Executive Officer/Managing Director/Manager, Whole-Time Director and Chief Financial Officer. Further, it visualises a much larger role for Company Secretaries in areas of secretarial audit, restructuring, liquidation, valuation and much more.

Download the highlights of the Companies Bill.

Note :  Same Highlights can be found on the ICSI Website here.



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The information / articles & any replies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do not constitute legal advice or legal opinions. The information / articles & any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, I can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information/article contained without first seeking the advice of a Practicing Professional.

5 thoughts on “Highlights of the Companies Bill 2012

  1. Dear Madam can you please tell me Companies Act, 2013 include section or clauses. Because the bare act published by ICSI elaborate in Sections but earlier these sections called clauses..

  2. I came across ur blog accidently while browsing for CA 2013, thank you

    shankaR

  3. I was about to ask you to simplify the new Bill to us. It would be interesting to see how this “One Person Company” goes down with the investors. You think the bankers and other lenders will have confidence in these “One Person Companies”? And also how long will it take for the new law to take effect?
    Thank you.

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