Company Law Will Be Cleansed Of ‘Criminality' Clause

Cabinet okays 72 amendments; Indian firms can directly list in foreign bourses

A massive overhaul of company law with special thrust on decriminalisation is on the cards with the Union Cabinet on Wednesday approving a Bill that will be carrying out 72 changes in as many as 65 sections of the Companies Act 2013.

The proposed amendments — which are likely to be moved in the ongoing Budget session — will make the company law a “bit more humane”, Finance Minister Nirmala Sitharaman said after the Cabinet meeting.

The latest move is part of the government efforts in recent years to reduce the criminality in provisions of company law and is aimed at further ease of doing business while de-clogging the criminal justice system.

From a level of 81 compoundable offences (prior to 2018 when government started its decriminalisation action), the number of compoundable offences will come down to 31 post the enactment of the latest Bill, said Injeti Srinivas, Secretary, Corporate Affairs Ministry.