Changes applicable to Private Companies as per new Companies Act, 2013
1. “Deposits except from Directors” Deleted from the definition of Private Company.
2. Private company to obtain Certificate of Commencement of Business.
3. Provision of “Rights Issue” applicable to Private Company.
4. Prohibition on loan to Directors/Related Parties.
5. Director to be in maximum of 20 companies: 10 public -- 20 private
6. Balance sheet to include:
(i) Cash flow statement
(ii) Statement of changes in equity
7. Auditor to hold office maximum up to 5 years at a stretch
8. Auditor to be in maximum of 20 companies (irrespective of private or public)
9. Annual return of certain companies to be certified by a Company Secretary in practice (excluding small companies)