A good part of the sections of the Companies Act, 2013 and their accompanying Rules have been notified recently as coming into force with effect from 1st April 2014. As a result several companies would have to take some immediate steps. Given below are some of the key Actions to be taken along with their timeframe.
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No.
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Action To be Taken
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Timeframe for taking Action
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1.
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CSR – For companies which are covered, Corporate Social Responsibility Policy and Committee to be put in place immediately and spending starts from this year itself.
This provision applies to all types of companies, including private companies.
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1-4-2014 (Immediately)
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2.
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Public Deposits – Drastic changes made in definition of Public Deposits, e.g., Optionally Convertible Debentures are now PDs. Verify whether any PDs as on 1-4-2014? If yes, then file a statement of such PDs with RoC by 1-7-2014 and repay them by 31-3-2015.
This provision applies to all types of companies, including private companies.
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1-4-2014 (Immediately) and onwards
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3.
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Lady Director – Unlisted Public Companies with Capital > Rs. 100 cr. OR Turnover > Rs. 300 cr. need to appoint a Lady Director within one year
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1-4-2015
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4.
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Lady Director – All Listed Companies need to appoint a Lady Director within 6 months (under SEBI Regulations)
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1-10-2014
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5.
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Independent Directors –Unlisted Public Companies with Capital > Rs. 10 cr. OR Turnover > Rs. 100 cr. OR Loans / Deposits > Rs. 50 cr. need to appoint 2 Independent Directors within one year.
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1-4-2015
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6.
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Independent Directors – Listed Companies need to reconstitute their IDs as per the definition given under the Act within one year
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1-4-2015
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7.
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Cap on Directorships – Max. 20 Directorships, of which 10 in Public Companies. Directors have one year to resign from excess directorships.
NOTE: As per SEBI Guidelines, out of the 10 public companies, only 7 can be Listed companies.
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1-4-2015
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8.
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Internal Audit –Unlisted Public Companies with Capital > Rs. 50 cr. OR Turnover > Rs. 250 cr. OR Loans > Rs. 100 cr. OR Deposits > Rs. 50 cr. need to appoint an Internal Auditor within 6 months. Further, all Listed Companies are also covered
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1-10-2014
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9.
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Internal Audit – Private Companies with Turnover > Rs. 200 cr. OR Loans > Rs. 100 cr. need to appoint an Internal Auditor within 6 months
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1-10-2014
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10
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Audit Committee – Unlisted Public Companies with Capital > Rs. 10 cr. OR Turnover > Rs. 100 cr. OR Loans, Deposits > Rs. 50 cr. need to appoint an Audit Committee within one year. Listed Companies are covered anyway.
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1-4-2015
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11
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Nomination Committee – Unlisted Public Companies with Capital > Rs. 10 cr. OR Turnover > Rs. 100 cr. OR Loans, Deposits > Rs. 50 cr. need to appoint a Nomination Committee within one year. Listed Companies are also covered.
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1-4-2015
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12
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Consolidated Financial Statements – All Companies (listed or unlisted or private) with subsidiaries / joint ventures / associates need to prepare CFS for FY 2014-15
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31-3-2015
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13
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Auditors – Rotation of Auditors after 5 years and Firms after 10 years. Period already served included for considering rotation period. 3 years implementation period given
Applies to Listed Cos / Public Cos. > Cap of Rs. 10 cr / Private Cos > Cap of Rs 20 cr. / Any Co. with Loans or Public Deposits > Rs. 50 cr.
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1-4-2017
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Please note this is not an exhaustive list by any means and you should verify which other sections apply to your company.