Amendments Under Companies Act In Economic Package Announced By Union FM

Prime Minister Shri Narendra Modi announced Rs 20 lakh crore fiscal stimulus equivalent to 10 per cent of India’s GDP to deal with COVID-19 situation in the country, the Union Finance Minister Nirmala Sitharaman announced the following amendments in the Companies Act 2013, to promote the motto of Self Reliant India and boost the economic status of the Country.

Amendments under Companies Act 2013:

• The Finance Minister announced that violations involving minor technical and procedural defaults – such as shortcomings in corporate social responsibility (CSR) reporting, inadequacies in board report, filing defaults, and delay in holding of annual general meetings (AGMs) will be decriminalized. This will de-clog the criminal courts and National Company Law Tribunal (NCLT).
• Majority of the compoundable offences sections to be shifted to internal adjudication mechanism (and powers of RD for compounding enhanced 58 sections to be dealt with under IAM as compared to 18 earlier)