Companies (Amendment) Act, 2019 - IndiaLegal
Highlights of the Act:
- The Act mandates that companies earning a profit of more than INR 5 crore (US $700,675), turnover of INR 100 crore (US $14 million), and net worth of more than INR 500 crore (US $70 million) will be required to spend at least two percent of their three years’ annual average net profit towards CSR activities.
- Offences such as unfiled file annual returns and financial statements, and 14 others, will now be brought under the ambit of civil liabilities instead of criminal.
- If the federal government opines that certain persons are ‘unfit’ or conducting business in a manner that may be detrimental to public interest, it may apply to the NCLT ( National Company Law Tribunal) to prevent mismanagement.
- Certain types of foreign companies may follow a non-March financial year.
- If the federal government deems that a business may be amassing profits through unfair means – by investigation through the SFIO (Serious Fraud Investigation Office) – they may apply to the NCLT to order the business to disgorge such profits.