InfoAlert : Highlights of the Companies (Amendment) Bill August-11-2020

The finance minister of India, Smt. Nirmala Sitharaman tabled the Companies (Amendment) Bill, 2020 (the “Bill”) before the Lok Sabha on March 17, 2020, to introduce certain modifications to the Companies Act, 2013 (the “Act”) with a view to promote ease of doing business and ease of living to corporates in India. The proposed amendments under the Bill are based on the recommendations submitted by the Company Law Committee (the “Committee”). The mandate of the Committee was relatively wide-ranging including envisaging various reforms to the Act such as reviewing offences introducing mechanisms to reduce burden on courts, ensuring effective disposal of cases, improving functioning of various authorities under the Act and suggesting other changes with the objective of promoting ease of doing business in India. The recommendations of the Committee were largely based on re-categorization of certain criminal compoundable offences into civil wrongs carrying civil liabilities, rationalization of penalties, mechanisms for reducing the overall pendency of disputes and certain other ancillary changes to address emerging issues impacting the working of corporates in the country. INDUSLAW’s Saurav Kumar, Swathi Sreenath and Neha Balodhi discuss the key aspects of the Bill.