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HIghiights companies act 2008

Aisha (Finance Professional) (8099 Points)

06 September 2008

Here are the Key Points of Companies Act 2008

- One-person company allowed, more stringent regime for not-for-profit firms

- Restrictions on number of partners in partnership firms, banking firms relaxed

- Companies will not be able to raise deposits from public, except through Special Acts

- Consolidation of financial statements of subsidiaries with holding companies mandatory

- Class action suits by shareholder associations, groups against companies allowed

- Revised framework for regulation of insolvency, new Insolvency Fund

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3 Replies

Murali (CA final cleared and CS final) (102 Points)
Replied 06 September 2008

Some more key points:

- Appointment of minimum 33% independent directors on board.

- No issue of shares on discount.

- Dividend can be claimed by investors even after 7 years.

- Investor education and protection fund will be administered by a statutory authority.

- No restrictions on no. of subsidiaries.

- Provides for a single forum for M&As.

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(Guest)

that is correct,another point to be included

Companies will not be able to raise deposits from public, except through Special Acts

(Guest)

As Per Partner ship Act 1932 there should not be more than 20 partners for a partner ship firm and 10 for banking busness. How can the companies Act 2008 can over write the partner ship Act in this aspect.