Modi Govt gives more fillips to private investors. Know how?
AdvertisementIn order to attract more
Private companies can now provide a shorter period for offering securities to members by way of right offers, approve employee stock options through a simple majority and follow "an easier procedure" for holding general meetings. These changes will further relax compliance requirements for private, government, charitable and
As per a statement issued by the
As per a PTI report, these private entities will not be required to file their board resolutions with the registry and give notice for directorships. The statement further added that “Requirement of mandatory consent of shareholders with regard to certain transactions relating to sale of undertaking, investments, borrowings etc has been omitted."
While calculating the maximum limit of 20 companies for audit by an auditor, one-person companies, dormant, small and private firms with less than Rs 100 crore paid-up share capital, would not be taken into account.
Among others, private companies with no investment by any corporate have been allowed to extend loans to directors subject to certain conditions. The official statement added that an interested private company director has now been allowed to participate in board meeting after declaring his interest.
On the other hand, for government companies, the Ministry has done away with limits on managerial remuneration as well as restrictions on maximum number of directorships and disqualification of directors in certain cases.
Popular on BI
- Micron begins construction on $2.7 bn India semiconductor plant in 'epic' beginning
- India, Japan agree to strengthen economic cooperation including achieving progress on high-speed railway project
- India rises to No 1 in ODIs, becomes top ranked team in all formats
- Discover what's new in iOS 17: Your ultimate guide to the latest features
- Hyderabad-based ethnic retailer Sai Silks Kalamandir IPO subscribed 4.4x