➢ Auditor not to perform specified non-audit services.
➢ Tenure or rotation of auditors prescribed.
➢ Internal audit for bigger companies.
➢ Substantial civil and criminal liability for an auditor in case of non-compliance.
➢ Tribunal empowered to direct a change of auditor in case of a fraud detected.
➢ Cost records and cost audit for prescribed class of companies.
➢ Secretarial audit for prescribed class of companies.
➢ National Financial Reporting Authority (NFRA) to be constituted.
➢ Protection of minority shareholders.
➢ Exit option provided, if there is dissent to change in object clause, or during
➢ Valuation mandated during compromise, arrangements, etc.
➢ Effect of merger on minority shareholding to be disclosed.
➢ Listed companies to have one Director representing small shareholders.
VI. Investor Protection
➢ Stringent norms for acceptance of deposits from the public.
➢ Strengthened role of Investor Education and Protection Fund (IEPF).
➢ No time bar on claims of dividends from IEPF.
➢ Class Action Suits recognized.
➢ Enhanced powers to tribunal for protection of minority rights.
Companies (Amendment) Act, 2015
The Companies Act, 2013 was amended through the Companies (Amendment) Act, 2015 to
facilitate business and address certain immediate concerns raised by stakeholders. These
amendments along with the relevant rules have been notified and they provide exemptions under
various provisions of the Act to (i) private companies, (ii) government companies, (iii) Section 8
companies and (iv) Nidhis.
Insolvency and Bankruptcy Code, 2016 (IBC, 2016)
The Insolvency and Bankruptcy Code, 2016 (Code) became functional from May, 2016.
Government of India (Allocation of Business) Rules, 1961 were amended wherein Ministry of
Corporate Affairs was entrusted with the responsibility to administer the Code. The Code has
been framed with the objective to consolidate and amend the laws relating to reorganization and
insolvency resolution of corporate persons, partnership firms and individuals in a time bound
Insolvency and Bankruptcy Board
The Insolvency and Bankruptcy Board of India (IBBI) was established in 2016. The IBBI
has the mandate for regulation of insolvency professionals, insolvency professional agencies and
information utilities besides exercising other powers and functions as envisaged under the Code.