Govt re-promulgates ordinance to amend companies law
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”.