Updates to India’s Companies Act 2013
DELHI – The Ministry of Corporate Affairs in India recently released more updates to the Companies Act 2013. There were changes to the limits of video conferencing for Audit Committee Meetings and to the limits on contractual agreements by companies with other parties.
On video conferencing:
- Audit committees can no longer conduct meetings for the consideration of consolidated financial statement through video conferencing or other audio visual means.
- Other matters also not allowed for board meetings through video conferencing and other audio visual means include approval of annual financial statements, Board’s report, prospectus and matters relating to amalgamation, merger, demerger, acquisition and takeover.
- Such things include approval of the annual financial statements, board’s report, prospectus and matters relating to amalgamation, merger, demerger, acquisition and takeover.
- The location of board meetings through video conferencing can now be outside of India.
On transactions with related party:
- Companies with paid up share capital of ten crore rupees or more are no longer restricted from entering into a contract or agreement with any related party, conditioned upon requirements of a Board Meeting and Special Resolution as stipulated under Section 188 of the Companies Act.
- However, limits to the allowable value of the transactions with related parties were lowered.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email email@example.com or visit www.dezshira.com.
Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.
An Introduction to India’s Audit Process
In this issue of India Briefing Magazine, we provide readers with an overview of India’s annual audit process and offer important tips for the smooth navigation of the country’s audit regulations and accounting standards. We begin by first explaining the two most common types of audit in India, statutory and internal audits, and then outline the standard steps and procedures an Indian auditor will follow in each.
Establishing a Business in India
In this magazine, we discuss establishment structures in India, including liaison offices, project offices, branch offices, and wholly owned subsidiaries. We overview each structure in terms of the situations in which it is appropriate, its permissible activities and limitations, as well as its setup and winding up processes, complete with flow charts.
- Previous Article Expert Commentary: Joint Ventures for Market Entry in India
- Next Article Establishing a Liaison Office to Reach the Indian Market