MINISTRY RELEASES RULES UNDER THE COMPANIES ACT, 2013

	MINISTRY RELEASES RULES UNDER THE COMPANIES ACT, 2013
	The Government has issued first set of draft rules, today (the 9th of Sept. 2013), covering 16 Chapters of the Companies Act, 2013. The second set of rules is to be released next week. Quick look at the draft rules 1) Limit on number of One Person Companies (‘OPCs’) - One person cannot form more than 5 OPCs; 2) Rotation of auditors - Incoming auditor or audit firm shouldn’t be under the same network or operating under the same trademark or brand as the outgoing auditor or audit firm. Rotation of joint auditors should be in such a way that all joint auditors do not complete their term in the same year; 3) Auditor’s duty to report fraud - Auditors are required to report material frauds to the Central Government; 4) Disqualification of auditors - Due to indebtedness - Limit increased from Rs.1,000 to Rs.1,00,000. Due to a relative holding shares – A relative of an auditor may hold securities of face value or interest in the company not exceeding Rs 1,00,000; 5) Compulsion to appoint a women director - At least one woman director is compulsory to be appointed in case of listed companies and unlisted companies with paid-up share capital of Rs.100 crores or more. (Click here to view the Draft Rules) (Click here to view full article) (Click here to view the Quick Guide to CA 2013)