Regulatory Alerts2023-05-26
Added · Updated
Amendments to the Companies (General Provisions and Forms) Regulations, 2018
New Regulation 20A establishes board approval thresholds for capital expenditure and asset disposal under the Companies Act, 2017. Public and large-sized companies must seek board approval for single-item capital expenditures exceeding twenty-five million rupees or fixed asset disposals exceeding five million rupees or one percent of total assets, whichever is lower. Medium and small-sized companies face lower thresholds of five million rupees for capital expenditure and one million rupees or one percent of total assets for asset disposal. Board approval is mandatory for any land and building transactions regardless of amount, while expenditures below these limits may be approved by a board committee with bi-annual reporting.