The Companies (Amendment) Act, 2020 received the assent of the President on the 28th September, 2020 and is now available for download.
The Act decriminalizes various non-compoundable offences in case of defaults, but not involving frauds, omitting imprisonment for various offences which were considered procedural and technical in nature.
Decriminalisation of various penal provisions under the companies law will help small companies by reducing the litigation burden on them.
The Act removes the penalty, imprisonment for 9 offenses which relate to non-compliance with orders of the national company law tribunal (NCLT), and reduces the amount of fine payable in certain cases. These include matters relating to winding-up of companies, default in publication of NCLT order relating to reduction of share capital, rectification of registers of security holders, variation of rights of shareholders and payment of interest and redemption of debentures.