Bill To Change Company Law To Encourage Ease Of Business Lok Sabha Passes
In the 2020 Companies (amendment) bill, the purpose of the new chapter on producer organisations is to decriminalise various criminal provisions.
By Rounak Sharma
The Lok Sabha passed on Saturday a law to further amend the Companies Act to decriminalise and encourage the conduct of non-compounding offences. In the 2020 Companies (amendment) bill, the purpose of the new chapter on producer organisations is to decriminalise various criminal provisions.
On the plan, Minister Nirmala Sitharaman, Finance and Corporate Affairs, said that the decriminalisation of the various provisions of company law would enable small businesses to reduce the litigation burden on them as well.
Around48 sections of the 2013 companies act will be revised to decriminalise different offences.
Ms. Sitharaman said about 124 penal provisions currently apply compared to 134 in 2013 in compliance with the Law on Companies.
The Minister noted that the amount of "non-compoundable" offences in the sense of the Act will not be relaxed for serious crimes like fraud and those that cause "injury to or deception to the public interest."
Compoundable crimes are typically those that can be remedied by paying some money.
The Minister also says a new chapter will be given on producers 'organisations, adding that farmers' organisations will benefit in particular.
The Minister said that 17 clauses would be changed to facilitate "simple service."
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