Updated: September 20, 2020 12:48:01 am
The Lok Sabha on Saturday handed the Companies Act (Amendment) Bill, 2020, which decriminalises a quantity of technical and filing-related company offences. It additionally permits direct itemizing of Indian corporations on international stock exchanges and revokes the felony provisions added to the Companies Act for violations of provisions of company social accountability guidelines.
The Bill is ready to exchange an Ordinance that has already introduced these modifications into impact.
It additionally appears to promote ease of doing business.
Speaking on the Bill, Finance and Corporate Affairs Minister Nirmala Sitharaman mentioned decriminalisation of varied provisions underneath the businesses legislation may even assist small corporations by lowering litigation burden on them. Around 48 Sections of the Companies Act, 2013 shall be amended to decriminalise varied offences.
Sitharaman mentioned there are at present round 124 penal provisions in contrast to 134 in 2013 underneath the Companies Act.
Stressing that there shall be no rest for severe offences, together with fraud and those who trigger “injury to public interest or deceit”, the minister mentioned the quantity of “non-compoundable” offences underneath the Act stays the identical at 35.
Generally, compoundable offences are these which may be settled by paying specific amount of money.
There may even be a brand new chapter on producer organisation, the minister mentioned, including that it will likely be significantly useful for farmer producer organisations. For selling “ease of doing business,” the minister mentioned that 17 provisions shall be amended.
– With PTI
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