The New Companies Bill has been approved and is now awaiting President’s nod to become an Act. This will dispense the 56 year old existing Act and is expected to bring fresh wave of laws and practices in line with current demands and also improve on accountability & transparency.
In this episode of eLagaan Whiteboard Friday, the eLagaan team talks about what the new Companies Bill 2012 contains for Startups. Few interesting changes like concept of Small Company which shall have relaxations in reporting & compliances, increase in number of directors & shareholders allowing better access to capital & mentorship, Introduction of One Person Company, Rights of First refusal getting standard vetting in Companies Law etc. are covered. These changes shall surely bring in confusions in the initial phase (as associated with any change) but in the short to long run will help improve the way Indian companies are currently being governed.