- Making things easier, the government has allowed private companies to accept deposits, while government firms have been exempted from managerial remuneration limits.
- As part of its ongoing efforts to improve ease of doing business in the country, the Corporate Affairs Ministry has notified changes that further relax compliance requirements for private, government, charitable and nidhi companies.
- In a significant relaxation, private companies have been exempted from certain provisions for related party transactions under the Companies Act, 2013.
- Private companies have also been allowed to accept deposits from members without the requirement of offer circular and creation of deposit repayment reserve.
- Requirement of mandatory consent of shareholders with regard to certain transactions relating to sale of undertaking, investments, borrowings etc has been omitted.
- One-person companies, dormant, small and private firms with less than Rs 100 crore paid-up share capital, would not be taken into account while calculating the maximum limit of 20 companies for audit by an auditor.
- Private companies with no investment by any corporate have been allowed to extend loans to directors subject to certain conditions.
- The provisions relating to loans to directors; loans and investments by companies and related party transactions have been modified to provide flexibility to government companies in complying with such provisions.
- Rotation of directors and right of persons to stand for directorships are exempted for wholly-owned government companies.
- Relaxing norms for charitable companies, the Ministry said these can send notices of a general meeting 14 days before the meet instead of the current norm of 21 days.
- The restrictions on number of directorships have also been exempted.
- In the case of nidhi companies, norms related to serving of documents to members and payment of dividend as well as those pertaining to related party transactions have been modified.
- The notice amount of Rs 1 lakh provided under section 160 has been reduced to Rs 10,000 for nidhi companies.