{"id":26981,"date":"2019-11-28T19:14:44","date_gmt":"2019-11-28T13:44:44","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=26981"},"modified":"2019-11-28T19:14:48","modified_gmt":"2019-11-28T13:44:48","slug":"threshold-limit-under-the-companies-act-2013","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/threshold-limit-under-the-companies-act-2013\/","title":{"rendered":"Threshold Limit Under the Companies Act 2013"},"content":{"rendered":"<p class=\"has-drop-cap\">The Applicability of the section and its provision is based on the inception whether it relates to the <strong>Appointment of the directors, Key Managerial Personnel, Auditor&rsquo;s Appointment, Committee establishment, XBRL filing, Related Party Transactions, Vigil Mechanism, Corporate Social Responsibility,<\/strong> etc. A full analysis of Threshold Limit Under the Companies Act 2013.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Threshold Limit and Provisions under the Companies Act,2013<\/h2>\n\n\n\n<p>The\nthreshold limit and the applicability of the provisions under the Companies Act\n2013 are as follows-<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Appointment of Directors and KMP<\/h2>\n\n\n\n<p><strong>Appointment of Directors (i.e. Women Director and Independent Director)-Section 149 of the <a href=\"http:\/\/www.mca.gov.in\/\">Companies Act, 2013<\/a>&ndash;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Appointment of Women Director-<\/h3>\n\n\n\n<p>The criteria\nfor appointing a Women Director, i.e. the below-mentioned companies shall\nappoint at least one-woman director-<\/p>\n\n\n\n<ul><li>Every listed public company;<\/li><li>Every other public company having &ndash;<\/li><li>A company having a paid-up share capital of <strong>one\nhundred crore rupees or more<\/strong>; or<\/li><li>A company having a turnover of <strong>three hundred crore\nrupees<\/strong> or more:<\/li><\/ul>\n\n\n\n<p><strong>Note-1 Women Independent Director shall be appointed in the Board of Directors by Top 500 entities by April 1, 2019, and Top 1000 listed entities by April 1, 2020.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Appointment of Independent Director-<\/h3>\n\n\n\n<p>The\ncriteria for appointing an Independent Director, i.e. the below-mentioned\ncompanies shall appoint an Independent Director-<\/p>\n\n\n\n<ul><li>Every Listed Public Company<\/li><li>Every other&nbsp;Public Companies having paid-up share\ncapital of <strong>ten crore rupees<\/strong> or more;<\/li><li>Every Public Company having a turnover of <strong>one\nhundred crore rupees<\/strong> or more; or<\/li><li>Every Public Company which have, in the aggregate,\noutstanding loans, debentures, and deposits, exceeding <strong>fifty crore rupees.<\/strong><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Appointment of Resident Director-<\/h3>\n\n\n\n<p>Every\nCompany shall appoint a Resident Director in the Company. <strong>(Section 149 of\nthe Companies Act 2013)<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Appointment of Key Managerial Personnel-<\/h3>\n\n\n\n<ul><li>All listed Public companies and<\/li><li>The public company\nwhich are unlisted, having a paid-up share capital of Rs. <strong>10 crores or\nabove.<\/strong><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Appointment of Company Secretary-<\/h3>\n\n\n\n<ul><li>Every listed Public Company,<\/li><li>All companies having a paid-up share capital of Rs <strong>5\ncrore or above<\/strong>,<\/li><li>Public Company having a paid-up share capital of <strong>Rs\n10 crore or above<\/strong>.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Constitution of Committees<\/h2>\n\n\n\n<p><strong>Different\nCommittees are required to be constituted by the companies falling under the\nbelow threshold limits-<\/strong><\/p>\n\n\n\n<p>For ameliorating\nthe Board&rsquo;s effectiveness and efficiency, Committees or &lsquo;Board Committees&rsquo; are\nformed in areas where more speciate and technical decisions are required to be\ntaken<\/p>\n\n\n\n<p><strong>I-Audit\nCommittee-<\/strong><\/p>\n\n\n\n<ul><li>Every listed public company.<\/li><li>Every Public Company having paid-up\nshare capital of <strong>10 crores rupees or above<\/strong>; or<\/li><li>Every Public Company having a\nturnover of <strong>100 crores rupees or above;<\/strong> or<\/li><li>Every Public Company which have, in totality,\noutstanding loans, debentures, and deposits, exceeding <strong>fifty crore rupees.<\/strong><\/li><\/ul>\n\n\n\n<p><strong>II-Nomination\nand Remuneration Committee-<\/strong><\/p>\n\n\n\n<ul><li>Every listed public company.<\/li><li>Every Public Company having paid-up\nshare capital of <strong>ten crore rupees or above<\/strong>; or<\/li><li>Every Public Company having a\nturnover of <strong>one hundred crore rupees or above;<\/strong> or<\/li><li>Every Public Company which have, in totality,\noutstanding loans, debentures and deposits, exceeding <strong>fifty crore rupees.<\/strong><\/li><\/ul>\n\n\n\n<p><strong>III-Stakeholder\nRelationship Committee-<\/strong><\/p>\n\n\n\n<p>A company having more than 1000 members, debenture holders, deposit holder or security holders at any time in a financial year, are required to constitute a <strong>Stake-holder Committee.<\/strong><\/p>\n\n\n\n<p><strong>IV-Corporate Social Responsibility Committee-<\/strong>Every Company are required to\nconstitute the CSR Committee-<\/p>\n\n\n\n<ul><li>Having\na net worth of Rs<strong>. 500 crore or above<\/strong>, or <\/li><li>Turnover\nof Rs. <strong>1000 crores or above<\/strong> or<\/li><li>A\nnet profit of <strong>Rs. 5 crores or above<\/strong> during any financial year.<\/li><\/ul>\n\n\n\n<p><strong>V-Internal Complaint Committee-<\/strong>Companies covered under POSH Act,2013, i.e.Prevention, Prohibition and Redressal) Act, 2013. It requires an employer to set up an Internal Complaint Committee at each office or branch, of a company employing 10 or more employees, to entertain and redress grievances related to sexual harassment.<\/p>\n\n\n\n<p><strong>VI-Risk Management Committee-As per the LODR\nregulation-Regulation 21, <\/strong>Every Listed Company except SME is required to constitute the Risk\nManagement Committee.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Appointment of Auditor and its rotation<\/h2>\n\n\n\n<p><strong>I. Appointment of Internal Auditor-<\/strong>Every Company falling under the below-mentioned\nthreshold limit is required to appoint the Internal Auditor-<\/p>\n\n\n\n<p><strong>A-<\/strong>Every Listed company;<\/p>\n\n\n\n<p><strong>B<\/strong>-Every unlisted Public Company having a paid-up share\ncapital of <strong>Rs 50 crore or above<\/strong> or having a turnover of Rs <strong>200 crore\nrupees or above<\/strong> during the previous financial year. <strong>Or,<\/strong><\/p>\n\n\n\n<ul><li>Outstanding loans or borrowings of the Unlisted Public Company from banks or public financial institutions exceeding <strong>100 crore rupees or above<\/strong> at any point of time during the previous financial year. <strong>Or<\/strong>,<\/li><li>Outstanding deposits of the Unlisted Public Company of <strong>25 crore rupees or above<\/strong> at any point of time during the previous financial year; <strong>and<\/strong><\/li><\/ul>\n\n\n\n<p><strong>C<\/strong>-Every private company having a turnover of <strong>200\ncrore rupees or above<\/strong> during the previous financial year;<strong> Or<\/strong><\/p>\n\n\n\n<ul><li>Outstanding loans\nor borrowings of Unlisted Public Company from banks or public financial\ninstitutions exceeding <strong>100 crore rupees<\/strong> or more at any point in time\nduring the preceding financial year.<\/li><\/ul>\n\n\n\n<p><strong>II. Appointment\nof Statutory Auditor<\/strong>-Every Company\nfalling in the below-mentioned category shall appoint Statutory Auditor-<\/p>\n\n\n\n<ul><li>Listed Public Company<\/li><li>Every Unlisted public company having a paid-up share\ncapital of <strong>50 crore rupees or more<\/strong>; or<\/li><li>Every Unlisted public company having a turnover of <strong>250\ncrore rupees or more.<\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Policy Making<\/h2>\n\n\n\n<p><strong>I-Vigil Mechanism Policy<\/strong>-Below mentioned Category are required to constitute a\nvigil mechanism Policy-<\/p>\n\n\n\n<ul><li>Listed Company<\/li><li>Companies which undertake deposits\nfrom the public;<\/li><li>Companies which has borrowed money\nfrom banks and public financial institutions in excess of <strong>fifty crore rupees<\/strong>.<\/li><\/ul>\n\n\n\n<p><strong>II-Risk Management Policy-<\/strong>Risk Management Policy is a policy to create and protect the stakeholder&rsquo;s value by minimizing the losses and to maximize the opportunities. The report of the Board of directors must include a statement that shall indicate the development and implementation of the <strong><a href=\"https:\/\/enterslice.com\/fraud-risk-management\">risk management<\/a><\/strong> Policy.<\/p>\n\n\n\n<p><strong>III-XBRL-<\/strong><\/p>\n\n\n\n<ul><li>All Listed Public Company and its Subsidiaries <\/li><li>All Public or\nPrivate companies having a paid-up capital of <strong>Rs. 5 Crore and above.<\/strong><\/li><li>All Public or\nPrivate companies having a turnover of <strong>Rs 100 Crore above<\/strong>.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Exemption-Below Mentioned companies are exempted from XBRL filing-<\/h3>\n\n\n\n<ul><li>Banking Companies<\/li><li>Insurance Companies<\/li><li>Power Companies<\/li><li>Non-Banking Financial Companies<\/li><li>Housing and Finance Companies<\/li><\/ul>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/mandatory-compliances-companies-act-2013\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mandatory Compliances under Companies Act 2013<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Applicability of the section and its provision is based on the inception whether it relates to the Appointment of the directors, Key Managerial Personnel, Auditor&rsquo;s Appointment, Committee establishment, XBRL filing, Related Party Transactions, Vigil Mechanism, Corporate Social Responsibility, etc. A full analysis of Threshold Limit Under the Companies Act 2013. Threshold Limit and Provisions [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":26983,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1322,2369],"tags":[2827],"acf":{"service_id":"1"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Threshold Limit Under the Companies Act 2013 - Enterslice<\/title>\n<meta name=\"description\" content=\"Threshold Limit and Provisions under the Companies Act are Appointment of Directors and KMP, Constitution of Committees, etc\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/threshold-limit-under-the-companies-act-2013\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Threshold Limit Under the Companies Act 2013 - Enterslice\" \/>\n<meta property=\"og:description\" content=\"Threshold Limit and Provisions under the Companies Act are Appointment of Directors and KMP, Constitution of Committees, etc\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/threshold-limit-under-the-companies-act-2013\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-11-28T13:44:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-11-28T13:44:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/11\/Threshold-limit-under-the-Companies-Act-2013.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Priyanka Bajpayee","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/09\/81216.jpg","authorDescription":"Priyanka Bajpayee has done Masters in International Business Law and well versed in content writing covering the area of legal and finance. 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