Navigating Corporate Compliance in 2025: What's New?

As we move further into 2025, several key amendments to the Companies Act have come into effect. This article breaks down the essential changes that every director and company secretary needs to know to ensure full compliance and avoid potential penalties.

The first major change pertains to the reporting requirements for annual general meetings (AGMs). The Ministry of Corporate Affairs (MCA) has mandated a more detailed disclosure of related party transactions. Companies must now provide a granular breakdown of any transactions exceeding 1% of the company's annual turnover. This is a significant step towards greater transparency.

Secondly, the rules around independent directors have been tightened. The new regulations specify a stricter 'cooling-off' period and expand the definition of what constitutes a 'pecuniary relationship,' aiming to enhance the independence and effectiveness of board oversight.

Key Takeaways for Directors

For directors, the onus is now heavier. It is crucial to maintain meticulous records and ensure that all disclosures are made accurately and within the stipulated timelines. We recommend conducting a thorough review of your company's compliance framework in light of these new amendments.

Staying proactive is key. Our firm provides comprehensive compliance audits and advisory services to help your business navigate these changes seamlessly.