Companies Act 2013 Current Affairs - 2020

Activities of APCOS launched by Y.S. Jaganmohan Reddy

For ensuring corruption-free job placements, Y.S Jaganmohan Reddy (Chief Minister of Andhra Pradesh) has formally launched the activities of state-owned placement agency-Andhra Pradesh Corporation for Outsourced Services (APCOS) through video conferencing on 3rd July 2020. Some outsourcing staff working in the General Administration Department were handed over appointment letters by the Chief Minister for the launch of the activities of APCOS.

The Chief Minister at the launch stated that with the establishment of APCOS, for hiring outsourcing employees the corrupt practices will be eliminated. As per the policy of the Andhra Pradesh Government of providing 50 reservation for minorities, women, SCs, STs, and BCs, the same will also be applicable under APCOS.

APCOS

On 18th October 2019, APCOS was incorporated as a Not-For-Profit Company under the Companies Act 2013. APCOS was created with the aim of the Andhra Pradesh state government for bringing transparency into governance by ending corruption and nepotism,  as over the years, the complaints in the recruitment process of outsourcing employees have significantly increased such as unpaid or delayed salaries, brides demanded at various levels for getting the job, etc.

With the launch of APCOS, recruitment of outsourcing employees will now be made online in the state of Andhra Pradesh. Also, the salaries of the outsourcing employees will now be directly transferred into the bank accounts of the employees.

Cabinet Approval: To amend Companies Act, 2013

On March 4, 2020, the Union Cabinet approved 72 changes to the Companies Act, 2013. The main aim of the amendment is to decriminalize the provisions in the act.

Highlights

The amendment aims to recategorize 23 offences and omit 7 compoundable offences. Under the amendment, the companies with Corporate Social Responsibility (CSR) obligation of less than Rs 50 lakhs need not constitute a CSR committee.

What is CSR?

The CSR is a concept through which a company takes volunteer efforts in philanthropical programmes and adopt businesses that benefit society. The Injeti Srinivas Committee was constituted to review existing frameworks of CSR and strengthen its ecosystem.

Section 129 A introduced

The act is to be amended to make filings more scientific. A new Section 129 A is to be included that will file results of unlisted companies (under the act) on a periodic basis. This is to be done in additional to annual filing.

Benefits

The amendments will help increase investments, especially foreign investments. This is mainly because, the amendment is to allow domestic firms to list on foreign exchanges. At present, Indian Companies have the option of GDR (Global Depository Receipt) and ADR (American Depository Receipt) alone.