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FLAWS OF CA13

Submitted To-: Mr. Praveen Srivastava

Submitted By-: Shivangee Goyal Kinni Kansana Akanksha Agarwal Abhishek Gurjar Mohit Kanjwani

The Companies Act 2013

Its short, simple, sweet with greater clarity of intent and purpose. It replaces the old law with over 700 conflicting clauses with something shorter and sweeter 470 clauses and all of it in 309 pages. The Act provides business friendly regulations, enhanced disclosure norms. corporate

It provides better investor protection and better corporate governance.

The FLAW
Loans to directors

Prohibition on forward dealings in securities

Compromise or Arrangement

Applicability of provisions to private companies

Insider Trading Transfer of an undertaking Auditors Section 4 (7) of the 1956 Act

Miscellaneous
Mandatory transfer of profits to reserves for dividend declaration dispensed. Inability to pay debts will be considered as criteria for determining a sick company.

Provisions of revival and rehabilitation of sick companies to apply to all companies and not only to an "industrial company
Corporate Social Responsibility (CSR)

To Sum-up
The 2013 Act has made shift from "government control" to "self-governance". The introduction of concepts of KMP, independent director and woman Director aim quality professionals at management/board level. The 2013 Act contains several welcome measures to boost M&A activities by allowing merger of Indian companies with foreign companies,.

All eyes are on the final Rules to be issued by MCA after considering suggestions received from stakeholders on the draft Rules.

THANK YOU ALL FOR YOUR ATTENTION ANY QUERIES ?