The Companies (Amendment) Bill, 2017 was passed by the Lok Sabha on 27th July 2017 and now only the approval of Rajya Sabha along with the President’s Assent is pending to give it the stature of Companies (Amendment) Act, 2017.
The major amendments proposed in the New Bill include clarity on definitions for identifying associate companies, holding & subsidiary companies, related parties etc; aligning disclosure requirements in the prospectus with the regulations made by Securities and Exchange Board of India (SEBI), providing for maintenance of register of significant beneficial owners and filing of returns in this regard with the Registrar Of Companies (ROC), simplification of the private placement procedure, removal of requirement for annual ratification of auditor, rationalization of provisions related to loan to directors, omission of provisions relating to forward dealing and insider trading and doing away with the requirement of approval of the Central Government for managerial remuneration above prescribed limits.
Some of the Amendments are as follows:
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