Government promulgates ordinance to amend Companies law


An ordinance for amendment of the companies law was promulgated by the government on Friday.  Entire details about the ordinance are not available as yet, but it is believed that amendments mainly relate to restructuring of corporate offences under the Companies Act, 2013.


The proposal to issue an ordinance to amend the Act was cleared by the Cabinet on Thursday.  According to an official, the ordinance had received assent from President Ram Nath Kovind and has been promulgated.


The Corporate Affairs Ministry, which is implementing the Act, has been looking at ways to promote ease of doing business as well as ensure better compliance levels.


In August, a government-appointed panel suggested various changes to the Act, including restructuring of corporate offences under the companies law and an in-house adjudication mechanism to address routine offences and make sure that courts get more time to deal with serious violations.


Apart from restructuring of corporate offences to relieve special courts from adjudicating routine offences, the panel has mooted "re-categorisation of 16 out of the 81 compoundable offences" under the Act.


The committee had also recommended disqualification of directors in case they have directorships beyond permissible limits and capping an independent director's remuneration. 

Written by The Realty Paper

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