The Companies (Amendment) Bill 2020
was introduced in the Lok Sabha on March 17, 2020. The bill was tabled by Minister of State for Finance Anurag Thakur, who said that the bill will promote ethical and honest business in the nation.
Companies (Amendment) Bill 2020 is mainly aimed at the decriminalization of major violations prescribed under the Companies Act 2013. Opposition criticized the bill by saying that it is for the company, by the company, and from the company. They also stated that the law would be more dilute the corporate social responsibility of the company sector. In response, Anurag Thakur stated that the bill will make the process of corporate social responsibility that is easy and that there are no plans to dilute it. He also added that the bill only proposes to decriminalize minor violations that do not harm the public but a burden on the legal framework and corporate decriminalization.
The amendments proposed under the Companies (Amendment) Bill 2020 are aimed at improving ease of doing business.Companies (Amendment) Bill 2020:
• Companies (Amendment) Bill 2020 proposes to make some amendments to the law firm, including decriminalizing violations. The bill proposes 72 changes to the Companies Act 2013. The Act amendments approved by the Union Cabinet on March 4, 2020.
• In accordance with the new proposed changes, about 23 violations will be recategorized of 66 compoundable offense under the Act and seven compoundable violations will be eliminated.
• The bill proposes to remove the prison conditions in various parts and also reduce the penalty in the case of various offenses compoundable.
• Under the bill, the company has an obligation CSR is less than Rs 50 lakh will not be required to form a CSR committee.
• The bill also proposes to lower the monetary penalties for violations by startups.