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

9) Director Identification Number (DIN): Directors shall register themselves with the government and obtain a Director Identification Number similar to that of an UID. This will facilitate in monitoring the number of directorships a director holds and prevent fraud. Hence, the government will have a better picture of the activities going on in a company.

Impact: Will make directors more accountable.

10) Financial Year to end on March 31: With exception to companies holding foreign subsidiaries requiring consolidation outside India, the financial year of any company should end on March 31.

Impact: Expected to bring uniformity.

11) Simple, Concise and Easy to Understand: The most appreciated feature of the Companies Bill 2013 is that it is simple, clear and concise. 700 clauses have been replaced by only 470 clauses and included in 309 pages. The Bill has come up with 33 new definitions. And 7 schedules have replaced 16 schedules from the old bill.

 Impact: Handy in governing all listed and unlisted companies in India.

Even though the Companies Bill has been passed by the Rajya Sabha, its execution might take some time. The Ministry of Corporate Affairs expects all the rules regarding the Companies bill likely to be in place by the end of this fiscal year, after taking into account the suggestions from experts, public and other stakeholders, reports PTI.

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