On 1 February 2016, the Companies Law Committee (CLC) submitted its recommendations to the government.
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:
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.
© 2017 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.