The government is setting the ground for another overhaul of the Companies Act 2013 to make it easier for corporates to do business in the country, a senior government official said.
The corporate affairs ministry(MCA) has formed six expert panels to work on more amendments to the Act on top of 16 amendments that parliament cleared earlier this year as India Incorporation still considers the legislature ‘too harsh’, the official said on condition of anonymity. “Groups consisting of sectoral experts have been formed to work on amendments and clarifications related to their subject.
The panels will look into easing the provisions of
- registry and incorporation,
- raising of funds,
- corporate governance and management,
- accounts and auditing,
- penalty, and
- setting up of National Company Law Tribunal (NCLT)
The government has set an internal target of completing this exercise by the end of the current fiscal, after which it would introduce a Bill in Parliament.
Earlier this year, corporate affairs ministry had called for suggestions to improve the Companies Act, 2013. According to experts, there are about 50 provisions in the Companies Act, 2013, which are hurting corporate India.