scorecardresearch
Follow Us:
Sunday, August 07, 2022

Centre clears 72 changes to Companies Act, decriminalises various offences

Addressing reporters after a cabinet committee meeting, Finance and Corporate Affairs Minister Nirmala Sitharaman said the priority is to "decriminalise" provisions in the Act.

By: Express Web Desk | New Delhi |
Updated: March 4, 2020 4:17:46 pm
Nirmala Sitharaman, Nirmala Sitharaman on GST, Nirmala Sitharaman on economy, Direct benefit transfer scheme, Indian express Finance Minister Nirmala Sitharaman said that the government would remove provisions of imprisonment in various sections and also reduce penalties in case of various compoundable offences. (Express photo by Prem Nath Pandey)

The Centre cleared as many as 72 changes to the Companies Act 2013 Wednesday, including decriminalising various offences.

Addressing reporters after a cabinet committee meeting, Finance and Corporate Affairs Minister Nirmala Sitharaman said the priority is to “decriminalise” provisions in the Act.

As many as 23 offences would be recategorised out of 66 compoundable offences under the new amended act. Besides, seven compoundable offences would be omitted, Sitharaman said.

She further said that the government would remove provisions of imprisonment in various sections and also reduce penalties in case of various compoundable offences.

Subscriber Only Stories
No victim-blaming, no fetishising of abuse: Darlings shows why we need mo...Premium
How the Indian action spectacular RRR became a smash in AmericaPremium
5 ways in which Samsung could improve the Galaxy Z Flip 4 and Fold 4Premium
Explained: First flight of India’s newest rocket, what it means for...Premium
Finance Minister Nirmala Sitharaman at a press conference. (File photo, source: PTI)

Sitharaman added that those companies which have CSR obligation of less than Rs 50 lakh would not have to constitute a CSR committee. These initiatives, she said, are aimed at ease of doing business.

The latest move by the government comes after Prime Minister Narendra Modi promised that his government is working to decriminalise provision of Companies Act to make it easier to do business in the country.

In November, a government-appointed high-level panel proposed decriminalising more than half of the existing compoundable offences under the companies law as well as lower monetary penalties for violations by startups, amid efforts to further improve the ease of doing business in the country.

Generally, compoundable offences are those which can be settled by paying a certain amount of money.

(with PTI inputs)

TWO IS ALWAYS BETTER | Our two-year subscription package offers you more at less

📣 Join our Telegram channel (The Indian Express) for the latest news and updates

For all the latest Business News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
First published on: 04-03-2020 at 04:07:21 pm

Featured Stories

Advertisement
Advertisement
Advertisement
Advertisement