Govt forms panel to review companies, LLP Acts : 19-09-2019

The government on Wednesday said it has constituted the company law committee for examining and making recommendations on various provisions and issues related to implementation of the Companies Act. The ministry of corporate affairs (MCA) said, in line with the government’s objective of promoting ease of living by providing ease of doing business to corporates, fostering improved corporate compliance for stakeholders and to address emerging issues impacting working of corporates, it has been decided to constitute the to examine and offer suggestions to government on provisions and issues pertaining to the Companies Act, 2013 and Limited Liability Partnership (LLP) Act, 2008.

The 11-member committee, which will be chaired by MCA secretary Injeti Srinivas, includes Uday kotak, Shardul Shroff and Ajay Bahl among others. “The committee shall submit its recommendations in phases and subject-wise to the government from time to time as may be decided by the chairperson of the committee. The committee shall initially have a tenure of one year from the date of its first meeting,” the ministry said.

Its terms of reference include suggesting measures to declog and improve functioning of the National Company Law Tribunal (NCLT), recommend measures to remove bottlenecks in the overall functioning of statutory bodies such as SFIO, IEPFA, NFRA, etc, the ministry said.

The high-level panel will also analyse the nature of the offences (compoundable and non- compoundable) and offer recommendations on whether the offences can be re-categorised as ‘civil wrongs’ along with measures to optimise the compliance requirements under the Companies Act, 2013.

“Identify specific provisions under the Companies Act, 2013 and the Limited Liability Partnership Act, 2008 which are required to be amended to bring about greater ease of living for the corporate stakeholders including but not restricted to review of Forms under the two Acts,” it added.

Source : PTI