➢ Provision of self-regulation with disclosures/transparency instead of ‘Government
               approval based regime’.
            ➢ Automation of corporate records/meetings - statutory recognition to (i) maintenance of
               documents by companies in electronic form, (ii) ‘video-conferencing’ as a mode of
               conducting board meetings, etc.
            ➢ Faster mergers and acquisitions including short form of mergers and cross border
            ➢ Summary liquidation: For companies having net assets of ₹ 1 crore or less, Official
               Liquidators (OLs) are empowered with adjudicatory powers.
            ➢ National Company Law Tribunal (NCLT) has been constituted under Section 408 in
            ➢ Concept of ‘dormant companies’ introduced (companies not engaged in business for two
               consecutive years can be declared as dormant).
            ➢ Concept of One Person Company (OPC) introduced.
      II. Good Corporate Governance and Corporate Social Responsibility (CSR)
            ➢ Concept of Independent Directors (IDs) included as a statutory requirement u/s 149 (4).
            ➢ Provision for constitution of several committees of the Board (Audit Committee,
               Nomination and Remuneration Committee, Stakeholders Relationship Committee and
               CSR Committee).
            ➢ Woman Director for prescribed class of companies.
            ➢ Mandatory provision for constitution of CSR Committee and formulation of CSR Policy,
               with mandatory disclosure, for prescribed class of companies.
      III. Enhancing Accountability of Management
            ➢ The term ‘Officer in Default’ has been reviewed to make it more relevant.
            ➢ Terms ‘Key Managerial Personnel’ (KMP) and ‘Promoter’ defined to affix responsibility
               on key functionaries of the company.
            ➢ Duties of Directors defined, including to shareholders, employees, the community and
            ➢ Cap on number of Directorships: 20 companies, of which 10 can be public companies.
      IV. Strengthened Enforcement
            ➢ The Central Government to have powers to order investigation, suo-motu, in public
            ➢ Statutory recognition of Serious Fraud Investigation Office (SFIO).
            ➢ Special Courts have been constituted under Section 435 in 2016.
            ➢ Search and seizure of documents, during investigation, without an order from a
            ➢ Freezing of assets or disgorgement of illegal gains of company under investigation.
      V. Audit Accountability
            ➢ Recognition of accounting and auditing standards.
            ➢ Stricter disqualification norms for auditors.