Minimum paid-up capital for incorporation of companies raised: Rs 5 lakh for public limited companies, and Rs 1 lakh for private limited companies. Postal ballot made optional, and the government holds the right to make it compulsory in special cases. National accounting standards to be introduced, with the setting up of a National Committee on Accounting Standards. Buyback of shares allowed only for equity restructuring. Non-voting shares allowed. Auditors banned from holding shares in a client company. Investor Protection Fund created, where all dividend, application money, interest and debentures unclaimed for seven years will go. Maximum age of directors and managing directors fixed at 65. Auditors and financial institutional nominee directors brought under the definition of officers in default. Inter-corporate loans and investments restricted to 60 per cent of the company's net worth.
