Recommendations In The Draft Of Proposed Companies Bill

Three fold classification of companies as private, public unlisted and listed companies.

Deemed public companies to be eliminated

No Government company to get any concessions or privileges

Company law tribunal to be constituted

Incorporation of group resource companies to be allowed

Sebi to be sole authority for listed companies

Government approval for acquisition and transfer of shares not required

Limit on inter-corporate investments - 60 per cent of the paid up capital and free reserves or 100 per cent of the free reserves

Buy back of shares or other specified securities to be allowed

Buy back not to increase debt-equity ratio in excess of 2:1

 

Foreign companies to be allowed to issue IDRs

Central government to prescribe limits, manner and conditions subject to which deposits are invited or accepted.

Maximum managerial remuneration payable not to exceed 11 per cent of its net profits in a year

Retiring age of directors to be 70 and that for whole time directors, managing director and manager to be 65

No person to be director in more than 20 companies

Listed public company having paid up share capital of Rs 3 crore or more to appoint chief financial officer

More detailed disclosures in boards report, annual report and financial statement

Public financial institutions, public sector banks, NBFCs and other notified companies to file shelf prospectus, valid for a year.

Employee stock option to be incorporated

Public limited company must give key infromation on its divisions or business segments

End use of funds raised from the capital market to be disclosed

Separate data on foreign currency transactions

Existing practice of depreciation to continue