Today, 20th December 2018, the Finance Minister Arun Jaitley introduced Companies (Amendment) Bill 2018 in the Lok Sabha as part of the efforts to promote the ease of doing business in the country.
The Bill replaces the ordinance issued in November 2018.
The Bill seeks to provide relief to companies and professionals alike by decriminalizing a host of offences.
The ordinance had recategorised certain ‘acts’ which are punishable as compoundable offences to ‘acts’ carrying civil liabilities.
The ordinance had ushered in measures to de-clog National Company Law Tribunal (NCLT) in addition to corporate governance reforms including re-introduction of declaration of commencement of business provision; holding of directorships beyond permissible limits to trigger disqualification of such directors and non-maintenance of registered office to trigger re-registration process.
Greater accountability was also brought to filing of documents relating to creation, modification and satisfaction of charges.