The Companies (Amendment) Bill, 2020

Mar 27, 2020 | by Avantis RegTech Legal Research Team

Secretarial Compliance

The Companies (Amendment) Bill, 2020 was introduced in Lok Sabha on March 17, 2020 to amend the Companies Act, 2013. The Bill mainly aims to decriminalise the major offences specified under the Companies Act, 2013.

The Bill provides the followings:-

1. It proposes to remove provisions of imprisonment in various sections and reduce penalties in case of various compoundable offences

2. It allows certain classes of public companies to list of classes of securities in foreign jurisdictions.

3. It excludes companies issuing specified classes of securities from the definition of a “listed company”.

4. The Bill extends the provision of remuneration to non-executive directors, including independent directors.

5. The Bill empowers the central government to exempt any class of persons from complying with the requirement of declaration of his beneficial interest of at least 10% shares in a company if considered necessary in public interest.

6. The Bill exempts companies with a CSR liability of up to Rs 50 lakh a year from setting up CSR Committees.  Further, companies which spend any amount in excess of their CSR obligation in a financial year can set off the excess amount towards their CSR obligations in subsequent financial years.  

7. The Bill empowers the central government to require classes of unlisted companies to prepare and file periodical financial results, and to complete the audit or review of such results.

8. The Bill seeks to establish benches of the National Company Law Appellate Tribunal.

[Bill No. 88 of 2020]


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