Background
 

On 1 February 2016, the Companies Law Committee (CLC) submitted its recommendations to the government.
 
New developments
 
Based on the recommendations of the CLC report, on 16 March 2016, the government proposed the Companies (Amendment) Bill 2016, (the Bill) on issues arising on account of implementation of the Companies Act, 2013 (2013 Act) in the Lok Sabha to amend the 2013 Act. The Bill considered
the suggestions made by the CLC as well as the comments received from the
stakeholders and ministries/departments.

The Bill proposes changes that are broadly aimed at addressing difficulties in implementation and are expected to help with the following objectives:

• Facilitate the ease of doing business in order to promote growth
• Harmonise with accounting standards, the Securities and Exchange Board of India Act, 1992 and the regulations made thereunder, and the Reserve Bank of India Act, 1934 and the regulations made thereunder; rectifying omissions and inconsistencies in the 2013 Act, and  
• Carry out amendments in the provisions relating to qualifications and selection of members of the National Company Law Tribunal and the National Company Law Appellate Tribunal in accordance with the directions of the Supreme Court.

Recommendations of the Bill

The recommendations cover significant areas of the 2013 Act, including definitions, raising of capital, accounts and audit, Corporate Social Responsibility (CSR), managerial remuneration, companies incorporated outside India and offences/penalties.

This issue of First Notes summarises key recommendations of the Bill 2016

To access the full text of the Companies (Amendment) Bill, 2016, please click here.