Section 147, 148, 149, 152, 153 and 157 of Companies Amendment Act 2017

Amendment of section 147 of Companies Act 2013

44. In section 147 of the principal Act,-
(i) in sub-section (2),-
(a) after the words "five lakh rupees", the words "or four times the remuneration of the auditor, whichever is less" shall be inserted;
(b) in the proviso, for the words "and with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees", the words "and with fine which shall not be less than fifty thousand rupees but which may extend to twenty-five lakh rupees or eight times the remuneration of the auditor, whichever is less" shall be substituted;
(ii) in sub-section (3), in clause (ii), for the words "or to any other persons", the words "or to members or creditors of the company" shall be substituted;
(iii) in sub-section (5), the following proviso shall be inserted, namely:-
"Provided that in case of criminal liability of an audit firm, in respect of liability other than fine, the concerned partner or partners, who acted in a fraudulent manner or abetted or, as the case may be, colluded in any fraud shall only be liable."

Amendment of section 148 of Companies Act 2013

45. In section 148 of the principal Act,-
(i) in sub-section (3),-
(a) for the words "Cost Accountant in practice", the words "cost accountant" shall be substituted;
(b) in the Explanation, for the words "Institute of Cost and Works Accountants of India", the words "Institute of Cost Accountants of India" shall be substituted;
(ii) in sub-section (5), in the proviso, for the words "cost accountant in practice", the words "cost accountant" shall be substituted.

Amendment of section 149 of Companies Act 2013

46. In section 149 of the principal Act,-
(i) for sub-section (3), the following sub-section shall be substituted, namely:-
"(3) Every company shall have at least one director who stays in India for a total period of not less than one hundred and eighty-two days during the financial year:
Provided that in case of a newly incorporated company the requirement under this sub-section shall apply proportionately at the end of the financial year in which it is incorporated.";
(ii) in sub-section (6),-
(a) in clause (c), for the words "pecuniary relationship", the words "pecuniary relationship, other than remuneration as such director or having transaction not exceeding ten per cent. of his total income or such amount as may be prescribed," shall be substituted;
(b) for clause (d), the following clause shall be substituted, namely:-
"(d) none of whose relatives-
(i) is holding any security of or interest in the company, its holding, subsidiary or associate company during the two immediately preceding financial years or during the current financial year:
Provided that the relative may hold security or interest in the company of face value not exceeding fifty lakh rupees or two per cent. of the paid-up capital of the company, its holding, subsidiary or associate company or such higher sum as may be prescribed;
(ii) is indebted to the company, its holding, subsidiary or associate company or their promoters, or directors, in excess of such amount as may be prescribed during the two immediately preceding financial years or during the current financial year;
(iii) has given a guarantee or provided any security in connection with the indebtedness of any third person to the company, its holding, subsidiary or associate company or their promoters, or directors of such holding company, for such amount as may be prescribed during the two immediately preceding financial years or during the current financial year; or
(iv) has any other pecuniary transaction or relationship with the company, or its subsidiary, or its holding or associate company amounting to two per cent. or more of its gross turnover or total income singly or in combination with the transactions referred to in sub-clause (i), (ii) or (iii);";
(c) in clause (e), in sub-clause (i), the following proviso shall be inserted, namely:-
"Provided that in case of a relative who is an employee, the restriction under this clause shall not apply for his employment during preceding three financial years.".

Amendment of section 152 of Companies Act 2013

47. In section 152 of the principal Act,-
(a) in sub-section (3), after the word and figures "section 154", the words and figures "or any other number as may be prescribed under section 153" shall be inserted;
(b) in sub-section (4), after the word "Number", the words and figures "or such other number as may be prescribed under section 153" shall be inserted.

Amendment of section 153 of Companies Act 2013

48. In section 153 of the principal Act, the following proviso shall be inserted, namely:-
"Provided that the Central Government may prescribe any identification number which shall be treated as Director Identification Number for the purposes of this Act and in case any individual holds or acquires such identification number, the requirement of this section shall not apply or apply in such manner as may be prescribed.".

Amendment of section 157 of Companies Act 2013

49. In section 157 of the principal Act,-
(i) in sub-section (1), the words and figures, "within the time specified under section 403" shall be omitted;
(ii) in sub-section (2), the words and figures, "before the expiry of the period specified under section 403 with additional fee", shall be omitted