Union cabinet approves an amendment to decriminalize offences in companies act

News Bharati    05-Mar-2020 19:03:47 PM
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New Delhi, March 05: To promote ease of doing business the Union Cabinet on Wednesday approved the Companies (second amendment) bill 2019. The 72 changes have been approved by the cabinet which will result in amending 65 sections. Briefing reporters, Corporate Affairs Minister Nirmala Sitharaman said the priority is to "decriminalise" provisions in the Act.

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As per the press release by Finance Ministry, the amendment bill enables the listing of Indian companies on stock exchange in foreign jurisdiction. As many as 23 offences would be recategorised out of 66 compoundable offences under the Act. Besides, seven compoundable offences would be omitted, she said.
Companies having CSR obligation of less than Rs 50 lakh would not have to constitute a CSR committee. Sitharaman added that the government would remove provisions of imprisonment in various sections and also reduce penalties in case of various compoundable offences. More firms in India complying with CSR norms under Companies Act say reports. Companies spent Rs 11,867 cr on CSR activities in financial year 2019 which is highest so far. With these amendments hope companies will work towards betterment of society and further development projects which will lead country.