New amendments in Company Law
Union Cabinet approves 43 amendments in Company Law – The Indian govt under the leadership of Prime Minister Narendra Modi approved 43 amendments in the Company Law. The govt seeks to strengthen the regulatory framework further and wants to ensure strict actions against those who violate it.
The National Company Law Tribunal (NCLT) has been declogged in order to bolster the corporate govt standards and provisions have been tweaked for the unspent CSR funds and several similar changes have been introduced by the Indian govt. Few sources while speaking to media have stated that the govt plans to introduce a bill in parliament so that it could carry out 43 amendments to the existing Companies Act, 2013. This year an ordinance would be replaced by the bill.
Under the 11 sections of this Act, 12 amendments are supposed to be carried out this year. Similarly there would be certain amendments in 29 sections and two new sections would soon be inserted by carrying out an ordinance. The govt also plans to decriminalize procedural and technical defaults and incentivize certain technical defaults.
The Corporate Social Responsibility (CSR) would also see changes in certain norms. Now companies can keep unspent monies in other account. The companies who are unable to spend their full amount for CSR activities in ongoing project under a particular financial year, they can transfer that money to a CSR account. However, they should make sure to spend that amount within the next three financial years.
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