Govt re-pro­mul­gates or­di­nance to amend com­pa­nies law

The Hitavada - - MONEY -

New Delhi, Jan 13 (PTI)

THE Gov­ern­ment has re­pro­mul­gated an or­di­nance to amend the com­pa­nies law to fur­ther im­prove the ease of do­ing busi­ness as well as en­sure bet­ter com­pli­ance lev­els. Since the Bill to make amend­ments to the Com­pa­nies Act, 2013, is pend­ing in the Ra­jya Sabha, the or­di­nance has been re-pro­mul­gated. The Lok Sabha passed the Bill on Jan­uary 4.

The Com­pa­nies (Amend­ment) Or­di­nance, 2019, was is­sued on Satur­day, ac­cord­ing to the of­fi­cial gazette. On Thurs­day, the Cabi­net cleared the pro­posal to re-is­sue the or­di­nance.

To amend the Com­pa­nies Act, the Gov­ern­ment had first is­sued the or­di­nance in Novem­ber and the same would have ceased to be op­er­a­tional from Jan­uary 21.

The amend­ments would help re­duce the bur­den on spe­cial courts and bring down ap­pli­ca­ble penal­ties for small com­pa­nies, among oth­ers. The or­di­nance has amended 16 sec­tions of the Act so as to mod­ify the pun­ish­ments from fine to mon­e­tary penal­ties to lessen the bur­den on the Spe­cial Courts.

Be­sides en­hanc­ing the ju­ris­dic­tion of Re­gional Di­rec­tor for com­pound­ing of­fences, the amended pro­vi­sions em­power the cen­tral gov­ern­ment to al­low cer­tain com­pa­nies to have a dif­fer­ent fi­nan­cial year in­stead of be­ing de­ter­mined by the Na­tional Com­pany Law Tri­bunal.

In Novem­ber 2018, the Gov­ern­ment said the or­di­nance amend­ing the Com­pa­nies Act, 2013, was pro­mul­gated with - pro­mo­tion of ease of do­ing busi­ness and bet­ter cor­po­rate com­pli­ance”.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.