#amendment rules

Enhanced Corporate Governance through Companies (Accounts) Second Amendment Rules, 2025

Purpose of the Amendment-

The MCA introduced such an amendment to reflect the government’s ongoing efforts to increase accountability, digitize statutory filings and promote a safer and more inclusive work environment.

The objectives behind the Companies (Accounts) Second Amendment Rules, 2025 are multifaceted

Enhancing transparency by digitizing key statutory disclosures.

Upholding accountability by mandating disclosures on workplace conduct and employee rights.

Promoting gender inclusivity through a focus on sexual harassment and maternity benefit compliance.

Ensuring better governance by tightening corporate reporting practices and workplace ethics.

Filing of Extracts of Board Report and Auditors Report

The new amendment also brings in a requirement to file specific extracts electronically. The form documents must be filed electronically-

Extract Board Report along with Form AOC-1 and AOC-2. This extract must contain all the relevant disclosures, including those about sexual harassment complaints and maternity benefits compliance.

Extract of Auditor’s Report (Standalone) — this involves submitting the key observations and audit opinions of the company’s standalone financial statements.

Extract of Auditor’s Report (Consolidated) — If the companies have subsidiaries or associates, the consolidated audit report extract must also be electronically filed.

Conclusion

The Companies (Accounts) Second Amendment Rules, 2025 signify a progressive step towards better corporate governance, employee welfare and regulatory efficiency. Companies must take proactive steps to implement internal mechanisms that support timely and accurate disclosures. From ensuring workplace safety for women to embracing the digitization of statutory forms, these rules represent a holistic enhancement of the cooperative compliance ecosystem.