Companies (Amendment) Bill, 2020 passed

  • IASbaba
  • October 3, 2020
  • 0
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Companies (Amendment) Bill, 2020 passed

Part of: GS Prelims and GS-III – Corporates

In news

  • Lok Sabha has passed the Companies (Amendment) Bill, 2020, which decriminalises a number of technical and filing-related corporate offences.

Key takeaways

  • It allows direct listing of Indian companies on foreign stock exchanges.
  • It revokes the criminal provisions added to the Companies Act for violations of provisions of corporate social responsibility rules.
  • 48 sections of the Companies Act, 2013 will be amended to decriminalise various offences. 
  • However, there will be no relaxation for serious offences, including fraud, deceit and those that cause injury to the public.
  • There will also be a new chapter on producer organisation which will be helpful for farmer producer organisations (FPOs) in the country.
  • 17 provisions in the Companies Act, 2013, have also been amended which paves way for easy and user friendly fulfilment of statutory compliances.

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