Companies Law committee will give its final report next month


Dated :- 27.11.2015

The high powered Companies law committee set up by government to address issues related to Companies act 2013 will give its final report on changes required next month. 

The eight-member committee that includes members from the industry as well as judiciary was set up earlier this year to recommend changes in Companies Act to improve the ease of doing business. 

The final meeting of the committee will be held on November 30 in Mumbai which will be chaired by the Corporate Affairs Secretary, a government official told . 

Another round of amendments to Companies Act 2013 are expected as recommendations made by the committee would then go to cabinet for its approval after that a bill is likely to be introduced in Parliament. The government expects to finish this exercise by the end of the current fiscal. 

According to experts, there are about 50 provisions in the Companies Act, 2013, which are hurting corporate India. They are mostly related to inter-corporate loans, related party transactions, consolidated financial statements, and strict penalties and imprisonment. 

The industry has sought relaxation in related party transactions (RPT), easing of inter-corporate loans, exemption for private companies from rotation of auditors, clarification that related party also includes holding and subsidiary incorporated outside India, and exemption of loans to all subsidiaries even if not wholly owned. 

After the Companies Act 2013 came into existence in April 2014, the government has brought out more than 50 clarifications and notifications and 16 amendments to the Act.