Tag Archives: AHLAWAT & ASSOCIATES

ILN Today Post

MCA amends the threshold limits for Related Party Transactions

The Ministry of Corporate Affairs (“MCA”) on 18th November 2019 vide notification of the Companies (Meeting of Board and its Powers) Second Amendment Rules, 2019 (“Second Amendment Rules, 2019”) issued further amendment to rule 15 of the Companies (Meeting of Board and its Powers) Rules, 2014.

The MCA vide Second Amendment Rules, 2019 seeks to revise the threshold limits pertaining to any contract or arrangement with a related party for transaction value beyond which the company would require approval of shareholders by way of a resolution [as provided under the first proviso to sub-section (1) of section 188 of the Companies Act, 2013].

The revised threshold limits prescribed in the Second Amendment Rules, 2019 are as follows:-

  • For the sale, purchase or supply of any goods or materials, directly or through appointment of agent, the revised threshold limit provides ten percent or more of the turnover of the company as against the earlier threshold limit of amounting to ten percent or more of the turnover of the company or rupees one hundred crore, whichever is lower [Amendment in Rule 15(3)(a)(i)];
  • For selling or otherwise disposing of or buying property of any kind, directly or through appointment of agent, the revised threshold limit provides ten percent or more of the net worth of the company as against the earlier threshold limit of amounting to ten percent or more of net worth of the company or rupees one hundred crore, whichever is lower [Amendment in Rule 15(3)(a)(ii)];
  • For leasing of property of any kind, the revised threshold limit provides ten percent or more of the turnover of the company as against the earlier threshold limit of amounting to ten percent or more of the net worth of the company or ten percent or more of turnover of the company or rupees one hundred crore, whichever is lower [Amendment in Rule 15(3)(a)(iii)];
  • For availing or rendering of any services, directly or through appointment of agent, the revised threshold limit provides ten percent or more of the turnover of the company as against the earlier threshold limit of amounting to ten percent or more of turnover of the company or rupees fifty crores, whichever is lower [Amendment in Rule 15(3)(a)(iv)].
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ILN Today Post

Proposed changes in the Companies Act, 2013 – Decriminalization of various offences

Since the inception of the Companies Act, 2013 (“Act”), the Government of India (“Government”) has undertaken and continues to undertake various amendments to the Act including the recent amendment dated July 31st, 2019, in which approximately 21 (twenty-one) criminal offences were decriminalized and re-categorized as civil offences.

Since then there have been constant deliberations to decriminalize more and more criminal offences under the Act, with the intent to avoid unwarranted prosecutions against the executives of the companies and provide a fair chance to compound the civil offences by paying penalties only.

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ILN Today Post

Finance Minister announces major reduction in Corporate Tax Rates

Finance Minister Smt. Nirmala Sitharaman at the 37th GST Council Meet held today i.e. September 20th 2019 has announced to reduce the corporate taxes for domestic companies and new local manufacturing companies through an ordinance.

The highlights of the Taxation Laws (Amendment) Ordinance of 2019 (“Ordinance”) are enumerated below:

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ILN Today Post

Union Cabinet approves proposal for review of FDI policy on various sectors

On August 28th, 2019 the Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved proposal for review of the Foreign Direct Investment (“FDI”) policy. The proposed changes in the policy will result in easing the FDI rules for various sectors such as coal mining, contract manufacturing, single brand retail trading and media etc. Further, it is expected that the changes in the FDI policy will result in making India a more lucrative investment destination and accelerate the economic development and progress of Indian economy.  

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International Lawyers Network Welcomes New Member in India

We’re so pleased to welcome a new member firm into our Network, Ahlawat & Associates, an Indian firm with offices in New Delhi, Mumbai and abroad.

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