Things You Must Know About The New Company's Bill 2013

2. Strict Rules for Auditors

With the passing of the Bill, the Auditors will have to be strictly monitored, for any misleading information could mean imprisonment up to one year. An auditor will be able to audit a maximum of 20 companies. Their work tenure will be of 5 years and has to be approved every year.

Impact:  A superior and reliable audit function.

3. Independent Directors

Every listed company should have one-third of their board members as independent directors. Independent directors can hold a maximum of 20 directorships and two consecutive terms of 3 years.

Impact: An active and observant board.

4. Stringent Statutory Rules

The Serious Fraud Investigation Office has gained the power to arrest offenders and exclusivity on any case they take up.

Impact: An effective and purposeful investigation of cases.

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