Amendments to companies law get President’s assent

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A bill that provides for a slew of amendments to the companies law, mainly to decriminalise various compoundable offences, has received assent of the President. The corporate affairs ministry will now notify separately when various provisions would be coming into force, according to an official.

The Companies (Amendment) Bill, 2020 — that also seeks to promote ease of doing business in the country — was cleared by Parliament on September 22 when Rajya Sabha gave its nod. Lok Sabha had passed the bill on September 19.

President of India Ram Nath Kovind has accorded assent to the bill, according to a notification dated September 28.

The bill has now become an Act, the official said.

There will be changes by way of 65 clauses, including amendments to 61 sections of the Companies Act, 2013. Besides, a new chapter related to producer organisation is being introduced in the Act, the official added.

Decriminalisation of various offences and a provision to permit direct overseas listing of Indian corporates are part of the legislation.

Reduction in penalties for certain offences as well as in timeline for rights issues, relaxation in CSR compliance requirements and creation of separate benches at the National Company Law Appellate Tribunal (NCLAT) are also among the amendments.

 

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