We hope you will find the same useful.A. Impact on DefinitionTerm of DefinitionImpact of the AmendmentKey Managerial PersonnelUnder the definition of the term “Key Managerial Personnel”, such other officer not more than one level below the directors who is in whole time employment and designated as KMP by the Board, is added.Net WorthThe change in the definition of net worth relates to including debit and credit balance of profit and loss account.Public Financial InstitutionThe change relates to exclusion of such financial institutions under the definition of PFIs, which are established under the Act, 2013 or any other previous company law which are not government companies as per clause (B).Small CompanyTurnover should be as per profit and loss account for the immediately preceding financial year and not as per its last financial year.Subsidiary CompanyOnly equity share capital shall be the basis for determining subsidiaries as it carries voting power.Turnover”turnover” means the gross amount of revenue recognized in the profit and loss account from the sale, supply, or distribution of goods or on account of services rendered, or both, by a company during a financial year;B. Liability of MemberA new Section 3A Inserted – Members severally liable certain cases3A. If at any time the number of members of a company is reduced, in the case of a public company, below seven, in the case of a private company, below two, and the company carries on business for more than six months while the number of members is so reduced, every person who is a member of the company during the time that it so carries on business after those six months and is cognizant of the fact that it is carrying on business with less than seven members or two members, as the case may be, shall be severally liable for the payment of the whole debts of the company contracted during that time, and may be severally sued therefor.C. Effect on incorporation of CompanyI. Alteration in Period of reservation of Name –Section 4(5)(i) – Memorandum::As per CAA-2017, the name shall be preserved for the following period:In case of Incorporation of New Company: Name shall be reserved for the 20 days from the date of approvalIn case of Change of Name: Name shall be reserved for the 60 days from the date of approval.II. Affidavit by Subscriber::At the time of incorporation of the company, declaration by each subscriber will be required to be attached instead of an affidavit, as currently provided.