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Takeaways from the Companies (Amendment) Act, 2017--Key Aspects

Pragya Bhandari

The Companies (Amendment) Act, 2017 has brought about several changes and new provisions in the Companies Act, 2013. Further, norms were relaxed by done away the various requirements. This article highlights the major takeaways from the Amendment Act, comparing with the existing provisions.

The Companies (Amendment) Bill, 2017 has been passed by Lok Sabha and Rajya Sabha on 27th July 2017 and 19th December, 2017 respectively. It received the assent of the President of India on 3rd January, 2018. The Companies (Amendment) Act, 2017(in short, the Amendment Act)has brought significant changes in the Company Law in India. The amendments made by the Amendment Act remove the loopholes of the Companies Act, 2013, further, clarifies and simplifies the existing provisions. The changes will come into force from the date notified by MCA and different dates may be prescribed for different provisions.

1. Extract of Annual Return

Section 92 of the Companies Act, 2013 requires that the extract of the annual return would form part of the Board's report. However, this requirement has been done away vide the Amendment Act. Thus, the companies are neither required to make the extract of annual return nor required to attach the same with Director's report. Instead of filing the extract of annual return, now companies would place a copy of the annual return on the website of the company, if any, and the web-link of such annual return would be disclosed in the Board's report. This would reduce the duplication of work as the companies will be required to prepare only annual return and not extract.

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