The Ministry of Corporate Affairs has issued a notice on 18th November 2019, Inviting comments from the stakeholders on the report of the Company Law Committee, which was held on September 2019.
The Committee was constituted to decriminalize the contraventions of the Companies Act, 2013, which doesn’t involve public interest. This is being done to provide Ease of Living for Corporate in the country.
Key Highlights of the Committee report:
- The committee has recommended amendments to 46 penal provisions associated with the law. 23 offences are re-categorized to reduce severity of penalty. The amendments are either to remove criminality or to allow rectification through alternate methods or to restrict punishment only to fine.
- The Committee has recommended to provide further easing of living for law abiding corporate.
- The Committee has Proposed setting up of benches of the National Company Law Appellate Tribunal.
- Provisions for allowing payment of adequate remuneration to non-executive directors in case of inadequacy of profits, by aligning the same with the provisions for remuneration to executive directors in such cases.
- Permitting appeals in NCLT against the orders of Regional Directors
- To review provisions on disqualification of directors
- Reviewing provisions in respect of debarment of audit firms after due consultation and examination.
The comments on the recommendations of the Committee may be sent latest by 25th November 2019 through email at comments.clc2019@mca.gov.in mentioning name, contact number, email address and postal address of the sender along with justifications in brief.
Click here to read the Notification
Click here to read the Committee report
