Modification in Companies Act 2013

1. The maximum number of persons/partners in any association/partnership may be upto such number as may be prescribed but not exceeding one hundred. This restriction wi not app y to an association or partnership! constituted by professiona s i"e awyer! chartered accountants! company secretaries! etc. who are go#erned by their specia aws. $nder the CA1%&'! there was a imit of maximum 20 persons/partners and there was no exemption granted to the professiona s. 2. The CA2013 pro#ides new form of pri#ate company! i.e.! one person company is introduced that may ha#e on y one director and one shareho der. The CA1%&' re(uires minimum two shareho ders and two directors in case of a pri#ate company. 3. The CA2013 pro#ides for entrenchment of artic es of association ha#e been introduced.

). The CA2013 pro#ides for entrenchment of artic es of association ha#e been introduced. &. The CA2013 proposed *+,o#ernance for #arious company processes i"e maintenance and inspection of documents in e ectronic form! option of "eeping of boo"s of accounts in e ectronic form! financia statements to be p aced on company-s website! etc. '. *#ery company sha ha#e at east one director who has stayed in .ndia for a tota period of not ess than 1/2 0one hundred and eighty two1 days in the pre#ious ca endar year. 2. The CA2013 stipu ates appointment of at east one woman 3irector on the 4oard of the prescribed c ass of Companies so as to widen the ta ent poo enab ing big Corporates to benefit from di#ersified bac"grounds with different #iewpoints.

/. The CA2013 stipu ates certain c ass of Companies to spend a certain amount of money e#ery year on acti#ities/initiati#es ref ecting Corporate 5ocia 6esponsibi ity. There may be difficu ties in imp ementing in the initia years but this measure wou d he p in impro#ing the $nder+pri#i eged 7 bac"ward sections of 5ociety and the Corporate wou d in fact gain in terms of their reputation and image in the 5ociety. %. The CA2013 introduced 8ationa Company 9aw Tribuna and the 8ationa Company 9aw Appe ate Tribuna to rep ace the Company 9aw 4oard and 4oard for .ndustria and :inancia 6econstruction. They wou d re ie#e the Courts of their burden whi e simu taneous y pro#iding specia i;ed <ustice. 10. The CA2013 pro#ides that a isted companies shou d ha#e at east one+third of the 4oard as independent directors. 5uch other c ass or c asses of pub ic companies as may be prescribed by the Centra ,o#ernment sha a so be re(uired to appoint independent directors. 8o independent director sha ho d office for more than two consecuti#e terms of fi#e years.

11. The ,o#ernment has right y reduced the need for the companies to see" appro#a s to manageria remuneration and the shareho ders ha#e been #ested with the power to sanction the imit. The CA2013 has introduced new concept of c ass action suits with a #iew of ma"ing shareho ders and other sta"eho ders! more informed and "now edgeab e about their rights. 12. The CA2013 focused and pro#ide ma<or aspect on appro#a s from shareho ders on #arious significant transactions

13. The CA2013 re(uires at east se#en days- notice to ca a board meeting. The notice may be sent by e ectronic means to e#ery director at his address registered with the company. The CA1%&' did not prescribe any notice period to ca the board meeting of a company.