The bill was introduced in Lok Sabha by Sitharaman.
Here are some of the changes introduced in the Companies Act:
Changes to offenses: The bill removes the penalty, imprisonment for certain offenses, and reduces the amount of fine payable in certain cases. However, Under the Act, one-person companies or small companies are only liable to pay up to 50% of the penalty for certain offences.
Exclusion from listed companies: The Bill empowers the Centre in consultation with the Sebi, to exclude companies issuing specified classes of securities from the definition of a “listed company”.
Exemptions from filing resolutions: The Act requires companies to file certain resolutions with the Registrar of Companies, which include resolutions of the Board of Directors of the company to borrow money, or grant loans. However, banking companies are exempt from filing resolutions passed to grant loans or to provide guarantees or security for a loan. This exemption has been extended to registered nonbanking financial companies and housing nance companies.
CSR: The Bill exempts companies with a CSR liability of up to Rs 50 lakh a year from setting up CSR Committees.
Benches of NCLAT: The Bill seeks to establish benches of the National Company Law Appellate Tribunal in New Delhi.
Direct listing in foreign jurisdictions: The Bill empowers the central government to allow certain classes of public companies to list classes of securities in foreign jurisdictions.
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