Union Finance Minister (FM) Nirmala Sitharaman on Sunday (17 May) said the government is going to decriminalise several Companies Act defaults which involve minor technical or procedural errors such as filing defaults, delay in holdings among others.
The FM also said that as many as seven compoundable offences in the Companies Act have been dropped, while five others will be dealt with under alternative framework.
“The Amendments will de-clog the criminal courts and National Company Law tribunals (NCLTs),” said the FM.
While making the announcement, the FM also said that the government had acted in timely manner after the COVID-19 crisis broke out in the country and reduced the compliance burden on companies under various provisions of Companies Act.
“Timely action was taken during COVID19 to reduce compliance burden under various provisions of Companies Act. Board meetings were allowed to be online, rights issues can be done digitally, major reform in corporate governance,” she said.
The Finance Minister today held her fifth press conference to announce the last tranche of economic stimulus package and reforms under the Atmanirbhar Bharat Abhiyan (Self-reliant India campaign).
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