Companies Bill for ease of doing business passed in Lok Sabha
Moving amendments to the Bill before it was passed by a voice vote, the Minister of State for Corporate Affairs P.P. Chaudhary said the Bill aims to de-clog the special courts and the NCLT.
To improve ease of doing business, the Lok Sabha on Friday passed the Companies (Amendment) Bill, 2018, designed to reduce the National Company Law Tribunal`s (NCLT) burden in volume of insolvency cases, as well as prescribe strong action against non-compliant companies.
Moving amendments to the Bill before it was passed by a voice vote, the Minister of State for Corporate Affairs P.P. Chaudhary said the Bill aims to de-clog the special courts and the NCLT.
"It will also reduce the burden on NCLT and special courts and improve ease of doing business in the country," he said.
The Bill was necessitated as the Companies (Amendment) Ordinance, 2018 was promulgated on November 2, 2018. It amends several provisions in the Companies Act, 2013, relating to penalties, among others.
It is based on the recommendations of a government-appointed committee to review offences under the Companies Act in order to promote ease of doing business along with better corporate compliance.
The panel suggested various changes to the Act last August, including restructuring of corporate offences under the companies law and an in-house adjudication mechanism to ensure courts are left free to deal with serious violations.
A total of 16 types of corporate offences have been shifted from special courts to in-house adjudication, increasing the scope of in-house assessment from 18 to 34 Sections of the Act.
The Bill also calls for instituting a transparent and technology driven in-house adjudication mechanism on an online platform and publication of the orders on the website.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
11:23 PM IST