Quick Summary
The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved the Companies (Second Amendment) Bill, 2019 to amend the Companies Act, 2013.
The Bill would remove criminality under the Act in case of defaults which can be determined objectively and which, otherwise, lack the element of fraud or do not involve larger public interest. This would also lead to further de-clogging of the criminal justice system in the country. The Bill would also further ease of living for law abiding corporates.
Earlier, the Companies (Amendment) Act, 2015 amended certain provisions of the Act to remove difficulties faced in implementation of various provisions of the Act.
FAQ :
The Union Cabinet has approved the Companies (Second Amendment) Bill, 2019.
The Bill aims to amend the Companies Act, 2013, by removing criminality for certain defaults that are objectively determinable and do not involve fraud or significant public interest.
The amendment is expected to de-clog the criminal justice system and further ease of living for law-abiding corporates.
No, it specifically targets defaults that lack the element of fraud or do not involve larger public interest and can be determined objectively.
Yes, the Companies (Amendment) Act, 2015, previously amended certain provisions to address implementation difficulties.
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