Making things easier, the government has allowed private companies to accept deposits without an offer of circular while government firms have been exempted from managerial remuneration limits. As part of its ongoing efforts to improve ease of doing business in the country, the Corporate Affairs Ministry has notified changes, which further relax compliance requirements for private, government, charitable and nidhi companies.
Private companies have been exempted from certain provisions for related party transactions under the Companies Act, 2013. They can now provide a shorter period for offering securities to members by way of right offers, approve employee stock options through a simple majority and follow “an easier procedure” for holding general meetings.
Flexibility has also been provided in the types of share capital that can be issued by private companies,” the Ministry said.
