Parliament, on receiving the assent of the Hon’ble President on the January 03, 2018, has notified the Companies Amendment Act, 2017. The brief details of the amendment Act are as under:-
· Amendments in relation to structuring, disclosure and compliance requirements for companies;
· Limitations on the number of intermediary companies through which investments can be made in a company. Similarly, the Act limits the number of layers of subsidiaries a company can have. The Act intends to removes these limits.
· The Act requires an individual who has a beneficial interest in the shares of a company to disclose the same. The Act also requires a group of persons who exercise beneficial control (above 25%) in a company to disclose such interest.
· Under the Act, a separate offer letter should be issued to individuals to whom a private offer of shares has been made. The Act intends to remove the requirement of such offer letter, but retains the provision related to notifying the Registrar of the return of allotment.
· The Act permits the appointment of members at the level of Joint Secretary to the quasi- judicial tribunal. Under the Act, a technical member must be at least of the level of an Additional Secretary.