Amendment - Auditors and Key Managerial Personnel

Ministry of Corporate Affairs (MCA) vide Removal of Difficulty order dated 30^th June, 2016 has substituted third proviso of section 139(2).

Earlier, Auditor Rotation was required to be complied within 3 years from the Commencement of this Act ie., 1^st April, 2014. Now, vide Removal of Difficulty order dated 30^th June, 2016, the same can be done till the Annual General Meeting(AGM) to be held after the completion of 3 years from 1^st April, 2014

For eg: If the financial year of the Company ends on 31^st Mar and Audit rotation is applicable to the Company, new auditor is to be appointed in the AGM to be held in 2017

Further, MCA vide notification dated 30^th June, 2016 has amended Companies (Appointment and Remuneration of Managerial Personnel) Rules. Following are the highlights of amendment:

• Return of  E-form MR-1 is not required to be filed for Chief Executive Officer (CEO), Company Secretary(CS) and Chief Financial Officer (CFO)
• The disclosure in Board Report is required to be given for TOP TEN Employees and the details of employees if the remuneration limits exceeds Rs. 8.5 Lakhs per month or Rs. 1.2 Crore per annum as the case may be
•  Rule 5 sub-rule (1), clauses (v), (vi), (vii) and (ix) to (xi) are omitted

To download notifications please follow the link:

 http://www.mca.gov.in/Ministry/pdf/ROD_Third_Order_2016.pdf

http://www.mca.gov.in/Ministry/pdf/AmendmentRules_01072016.pdf