A major focus of the bill is on CSR (Corporate Social Responsibility) spending , wherein companies would have to mandatorily keep unspent money into a special account.
The companies earning a profit of over Rs 5 crore, turnover of Rs 100 crore or net worth of more than Rs 500 crore are required to shell out at least two per cent of their three-year annual average net profit towards CSR activities.
In case money remains unspent for one plus three years, the money will have to be moved to an escrow account, she said, adding it could even be the Prime Minister’s Relief Fund.
Shifting of powers for conversion from public to private companies from National Company Law Tribunal (NCLT) to the central government, as well as more clarity with respect to certain powers of the National Financial Reporting Authority (NFRA).
The bill empowers the Registrar of Companies (ROC) to initiate action for removal of the name of the company from Register of companies if it is not carrying on any business or operation in according with the company law.
Sixteen minor offences have been re-categorised as civil defaults and transferring of functions with regard to dealing with applications for change of financial year to Central government.