Why in the news?

• Centre announced that it has notified the Companies (Amendment) Act 2017, which is set to ease the implementation of the Insolvency and Bankruptcy Code 2016.

More on news

• The provisions of this Amendment Act shall come into force on the date or dates as the Central Government may appoint by notification(s) in the Official Gazette.
• A few provisions in the Amendment Act have important bearing on the working of the Insolvency and Bankruptcy Code 2016.

Key changes

• The new Act has changed the current Section 53 of the Companies Act 2013 that prohibits the issuance of shares at a discount
• Similarly, Section 197 of the Companies Act 2013 requires the approval of the company in a general meeting for the payment of managerial remuneration in excess of 11% of the net profits.
• The amended Act says that in case of payment default, “... the prior approval of the bank or public financial institution concerned or the non-convertible debenture holders... for such payment of managerial remuneration shall be obtained by the company before obtaining the approval in the general meeting.”
• Section 247 of the Companies Act 2013 prohibits a registered valuer from undertaking valuation of assets in which he has a direct or indirect interest. Amendments limit the prohibition to three years prior to a valuer’s appointment or three years after the valuation was conducted.

Source

The hindu.