A seminar on 'Understanding nuances of transfer pricing and Companies Act 2013' was organised by the Confederation of Indian Industry (CII) Chandigarh council here on Friday.
Addressing the seminar, council chairman Darpan Kapoor said, “Due to the hurried pace in which the Companies Act, 2013, and the Companies Rules, 2014, were implemented, the industry barely got an opportunity to absorb and understand the provisions or their impact in their entirety. Many new concepts are being introduced in the legislation for the first time, and practices with respect to these need to be allowed to evolve over time. However, the rush to notify the act has introduced disruptive features making it harder for corporates to ensure compliance".
"The new Companies Act 2013 that has replaced the old Companies Act, 1956, is a new beginning for the Indian industry as it makes comprehensive provisions to govern all listed and unlisted companies in the country," said Vishwas Panjiar, director, direct tax and regulatory expert, Walker Chandiok and Co LLP.
"It is a boon for private companies in terms of shareholding as it increased the number of maximum shareholders in a private company from 50 to 200. Also, it introduces new form of private company, that is, one person company is introduced that may have only one director and one shareholder. The Company's Act 1956 required minimum two shareholders and two directors in case of a private company," he further said.
Pikender Pal Singh, regional director of CII Northern region, said, "In absence of any unambiguous clarifications from the ministry of corporate affairs, companies are resorting to different interpretations of the provisions of the Companies Act, 2013. There is no uniform interpretation of even items of ordinary business such as appointment of independent directors".