The Company Law Committee (CLC), a group of experts appointed by the Ministry of Corporate Affairs (MCA), is considering making new rules for larger unlisted companies. The CLC will also define what makes a company “large” based on its size and revenue.
CLC to Consider Quarterly Financial Reporting for Larger Unlisted Companies
The Company Law Committee (CLC) is considering requiring larger unlisted companies to report their financial results quarterly, just like listed companies.
The CLC will also define what makes a company “large” for this purpose.
The Ministry of Corporate Affairs will definitely refer this issue to the Company Law Committee for discussion.
It is always helpful for the Ministry to get the perspectives of an organized committee with members from different backgrounds and areas of expertise.
India’s Largest Startup Byju’s Prompts Regulatory Overhaul for Unlisted Firms
According to sources, the Company Law Committee is poised to contemplate more stringent regulations for larger unlisted companies.
The report also indicates that the committee is evaluating the possibility of implementing heightened regulatory standards for financial reporting within this category of firms.
Additionally, it was mentioned that the panel may define the criteria for categorizing companies as ‘bigger’ and introduce stricter norms for such unlisted enterprises.
This recent development has been prompted by the irregularities observed at the ed-tech company Byju’s, where auditors resigned.
Furthermore, three board members have tendered their resignations due to disagreements with founder Byju Raveendran on significant operational matters.
Moreover, If you want any other guidance relating to Quarterly Company Compliances for Unlisted Companies, please feel free to talk to our business advisors at 8881-069-069.
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