The Indian Government recently introduced a bill to amend the Companies Act to further improve the ease of conducting business and ensure better compliance. The bill would replace the Companies (Amendment) Ordinance, 2018, promulgated in November. The amendments will help reduce the burden on special courts and bring down penalties for small companies.
The bill will amend 16 sections of the Act “so as to modify the punishment as provided in the said sections from fine to monetary penalties to lessen the burden upon the Special Courts,” corporate affairs minister Arun Jaitley said in the statement of objects and reasons, according to a news agency report.The Indian Government recently introduced a bill to amend the Companies Act to further improve the ease of conducting business and ensure better compliance. The bill would replace the Companies (Amendment) Ordinance, 2018, promulgated in November. The amendments will help reduce the burden on special courts and bring down penalties for small companies.#
The bill will enhance the jurisdiction of the regional director for compounding offences and would empower the central government to allow certain companies to have a different financial year instead of being determined by the National Company Law Tribunal.
The amendments followed recommendations by a government-appointed panel that reviewed the offences under the act.
With the latest amendments, jurisdiction of 16 types of corporate offences would be shifted from the special courts to in-house adjudication. (DS)
ALCHEMPro News Desk – India
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