Private firms can now provide a shorter period for offering securities
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New Delhi: In continuation of efforts to improve ease of doing business, the Centre on Monday relaxed deposit-taking norms for private companies and exempted the public sector entities from managerial remuneration restrictions.
Private firms can now provide a shorter period for offering securities to existing shareholders, approve employee stock option plans through a simple majority and follow “an easier procedure” with regard to holding general meetings.
Private companies have also been allowed to accept deposits from members without the requirement of offer circular and creation of deposit repayment reserve. Exemption has been given from filing of board resolutions with the registry and giving of notice for standing for directorships.
Requirement of mandatory consent of shareholders with regard to certain transactions relating to sale of undertaking, investments, borrowings among others has been omitted.
( Source : dc correspondent )
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