The Companies Law Committee (CLC) was constituted on 4 June 2015 to examine and making recommendations on the issues arising out of implementation of the Companies Act, 2013 (2013 Act) as well as the recommendation received from the Bankruptcy Law Reforms Committee, the High Level Committee on CSR, the Law Commission and other agencies. The CLC submitted its report to the government on 1 February 2016.
In making its recommendations, the CLC conducted extensive consultations with stakeholders including all industry chambers, professional institutes, law firms, financial sector and other regulators. The consultation process resulted in more than 2,000 suggestions.
The CLC has recommended amendments to both the 2013 Act and the Rules to the 2013 Act. It has proposed changes in 78 sections of the 2013 Act, which along with consequential changes, would result in about 100 amendments to the 2013 Act. It has proposed approximately 50 amendments to the Rules. The recommendations cover significant areas of the 2013 Act, including definitions, raising of capital, accounts and audit, corporate governance, managerial remuneration, companies incorporated outside India and offences/penalties.
This issue of First Notes summarises key recommendations of the CLC.
To access the text of the report of the CLC, please click here.