CA IPCC Company Law Amendments Notes and B.Law Changes for May 2017 are 8-10 in number. Bonus Act Law Amendments for May 2017 Exam are very few as compared to the amendments in Company Law and other topics. These changes in law were brought from Companies Act.
Bonus Act is the part of Business Laws Syllabus of CA IPCC. Every year, as Bonus Act is amended, few notable changes comes into effect. Therefore, for every 12 months, there will be very minor to major amendments in the Bonus Act and Company Law Syllabus. To Make your preparation easy, get our free pdf e-books and Notes of Law for Quick Revision.
This leads to severe confusion among the students regarding what Bonus Act Amendments are applicable for the November 2016 exam and what amendments are not applicable for the November 2016 exam.
To clear this confusion, we are below providing the complete list of changes and what amendments have come into effect for the upcoming November 2016 exams.
Law Amendments Applicable for May 2017 Exams:
1. Deposits from Directors
Every company, other than a private company, shall disclose in its financial statement, by way of notes, about the money received from the director.
Every private company shall disclose in its financial statement, by way of notes, about the money received from the directors, or relatives of directors.
2. Sweat Equity Shares by a Startup
A Startup (as defined by Department of Industrial Policy and Promotion) may issue sweat equity shares not exceeding fifty per cent of its paid up capital upto five years from the date of its incorporation or registration.
After such 5 years, regular Companies Act section relating to Sweat Equity Shares shall apply to these startups also.
3. Shareholding Positions
Every listed company shall file with the Registrar, a return in Form No. MGT.10, with respect to changes in the shareholding position of promoters and top ten shareholders of the company, in each case, representing increase or decrease by two per cent or more of the paid-up share capital of the company, within fifteen days of such change.
IPCC Old Company Law Amendments to Read for May 2017
- Public Companies now need to file a Declaration with SEBI and RBI (Only Certain Companies) and obtain approval at the time of filing the Incorporation Documents with the ROC. Earlier, there is no such rule to get the approval.
- Minimum Capital Requirements of Rs.1 Lakh and Rs.5 Lakh removed for Companies. Now Public and Private Companies don’t have any such Minimum requirement.
- In case of any Contravention in Accepting Deposits from Public, Companies now need to pay a Minimum fine of Rs.1 Croreand a Max of Rs.10 Crore.
- Notice period for General Meetings reduced to 14 days. Earlier it is 21 days. This Amendment is applicable only for Section 8 Companies.
- A Company need to serve documents only on such members who are holding at least Rs.1,000 in face value of shares or 1% of total paid up share capital. Earlier, a company is bound to serve documents to all the members.
- When a company goes for further issue of Share Capital, an Ordinary Resolution has to be passed. Earlier, it is Special Resolution.
IPCC Bonus Act Law Salary Amendments
Every Employee working in an establishment and earning salary or wage not exceeding Rs.10,000 per month is eligible for Bonus.
Recently, Central Government has increased this limit to Rs.21,000, which has already become applicable.
It is hereby clarified that this new limit is APPLICABLE for May 2017 exams, and students should not consider the old limit i.e., Rs.10,000.
Further Amendments in Bonus Act Law
It is also further clarified that, as this amendment in Law Bonus Act is applicable from November 2016 exams, there are high chances that ICAI will ask a question from this topic for May 2017 exams or May 2017 exams.
Students must also note that, there has been other amendment in the Bonus Act syllabus, which was already applicable from Nov 2016 exams. The Amendment is as follows:
Earlier the Bonus limit is Rs.3,500. However, this has been changed recently and the applicable salary limit is Rs.7,000 now.
Students are requested to take note of this important amendment in the Bonus Act portion.
Bonus Act Syllabus with changes
Other Topics in CA IPCC Bonus Act Syllabus which are applicable for the exams are:
- Applicability of the Bonus Act
- Definitions in Bonus Act
- Who is entitled to Bonus
- The Second Schedule of Bonus Act
- Minimum Bonus
- Maximum Bonus
- Bonus linked with production
There have been rumours that there are amendments in the rates of Maximum Bonus and Minimum bonus, which are totally false.
Apart from increase in the salary limits, there have been no amendments in the CA IPCC Bonus Act syllabus.