Which one among the following is not a salient feature of the Companies Bill as amended in the year 2012 ?

The Companies Bill 2012 (which became the Companies Act 2013) introduced several corporate governance reforms. Option 1 is a salient feature, as the Act mandates that companies give preference to local areas for Corporate Social Responsibility (CSR) spending. Option 2 is also a feature, as Section 36 of the Act prescribes punishment for fraudulently inducing persons to enter into agreements with banks or financial institutions. Option 4 is correct because Section 149(13) stipulates that the provisions regarding the retirement of directors by rotation do not apply to Independent Directors. However, Option 3 is incorrect and thus the right answer; the Act specifically imposes a strict limit on the number of audits an individual can undertake. Under Section 141(3)(g), a person cannot be appointed as an auditor for more than 20 companies, ensuring audit quality and preventing concentration of power [1].

Sources

1. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > 12.16 Indian Economy > p. 390