Parliament Passes Bill to Amend Companies Law; Various Offences Decriminalised

Parliament on Tuesday passed a bill to further amend the Companies Act and decriminalise various compoundable offences as well as promote ease of doing business in the country. The Companies (Amendment) Bill, 2020 was passed by a voice vote in Rajya Sabha, amid several opposition MPs boycotting the proceedings of the House to protest suspension of eight members. The Lok Sabha had given its approval to the bill on September 19.

The Companies (Amendment) Bill, 2020 seeks to decriminalise various penal provisions, permit direct overseas listing of Indian corporates and introduce a new chapter related to producer organisations in the legislation. Reduction in penalties for certain offences as well as in timeline for rights issues, relaxation in CSR compliance requirements and creation of separate benches at the National Company Law Appellate Tribunal (NCLAT) are also among the proposed changes.