The government has introduced a amendment bill for changes in Companies Act, 2018 to improve the ease of doing business and ensure better company compliance management and it will replace the Companies Act, 2018.
The amendments will help reduce the burden on special courts and bring down applicable penalties for small companies, among others.
The bill will amend 16 sections of the Act “so as to modify the punishment as provided in the said sections from fine to monetary penalties to lessen the burden upon the Special Courts,” Corporate Affairs Minister Arun Jaitley said in the Statement of Objects and Reasons.
The amendments through the ordinance were effected on the basis of recommendations made by a government-appointed panel that reviewed the offences under the Act.
Source : Livemint
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