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Government approves promulgating ordinance to amend Companies law

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.

Edited by: India TV News Desk, New Delhi [ Updated: November 02, 2018 15:59 IST ]
Representative Image.

Representative Image.

The Union Government on Friday approved promulgating ordinance to amend the companies law, a senior official said. The official said that the ordinance had received final approval from President Ram Nath Kovind and has been promulgated. The proposal to issue an ordinace to amend the Companies Act, 2013 was cleared by the Cabinet earlier on Thursday.

However, the officials stated that the details regarding the proposed amendments could not be furnished.

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 ensure 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.

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