Govt introduces Companies (Amendment) Bill in LS

The Government introduced the Companies (Amendment) Bill, 2018 which seeks to amend the Companies Act, 2013, in the Lok Sabha on Thursday. Union Finance Minister Arun Jaitley introduced the Bill that seeks to replace the Companies (Amendment) Ordinance, 2018 which was promulgated by President Ram Nath Kovind on November 2.

The Bill provides to amend clause (41) of section 2 of the Companies Act, 2013 so as to empower the Central Government to allow certain companies to have a different financial year instead of as determined by the Tribunal.

The proposed law provides to amend section 12 of the Act empowering the Registrar to initiate action for the removal of name of the company from register of companies, if the company is not carrying on any business or operation in accordance with the provisions of the Act.

The Bill provides to amend 16 sections of the Act so as to modify the punishment as provided in the said sections from fine to monetary penalties to lessen the burden upon the Special Courts and to amend section 441 of the Act so as to enhance the jurisdiction of the Regional Director for compounding of offences.

The Insides Speak.