Lok Sabha on Saturday passed a bill to amend the Companies Act and decriminalise various compoundable offences as well as promote ease of doing business in the country.
The Companies (Amendment) Bill, 2020 seeks to decriminalise various penal provisions, permit direct overseas listing of Indian corporates and introduce a new chapter related to producer organisations in the legislation.
A reduction in penalties for certain offences as well as in the timeline for rights issues, a relaxation in corporate social responsibility compliance requirements and creation of separate benches at the National Company Law Appellate Tribunal are among the proposed changes.
Speaking on the bill, Finance and Corporate Affairs Minister Nirmala Sitharaman said decriminalisation of various provisions under the Companies Law will help small companies by reducing the litigation burden on them.
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