COMPANIES ACT, 2013
This act introduces significant changes in the provisions related to governance, e-management, compliance and enforcement, disclosure norms, auditors and mergers and acquisitions. Also, new concepts such as one-person company, small companies, dormant company, class action suits, registered values and corporate social responsibility have been included. The Act, 2013 has introduced several new concepts and has also tried to streamline many of the requirements by introducing new definitions.
Dormant Company The Act, 2013 states that a company can be classified as dormant when it is formed and registered under this Act, 2013 for a future project or to hold an asset or intellectual property and has no significant accounting transaction.
National Financial Reporting Authority (NFRA) The Act 2013, requires the Constitution of NFRA, which has been bestowed with significant powers not only in issuing the authoritative pronouncements, but also in regulating the audit profession.
Serious Fraud Investigation Office (SFIO) The Act, 2013 has bestowed legal status to SFIO.
Corporate Social Responsibility The Act, 2013 makes an effort to introduce the culture of Corporate Social Responsibility (CSR). In Indian corporates by requiring companies to formulate a corporate social responsibility policy and at least incur a given minimum expenditure on social activities.
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