The Ministry of Corporate Affairs (MCA) may plan to propose a Corporate Amendment Bill that would revise both the Companies Act and the Limited Liability Partnership Act, aiming to simplify processes and reduce the compliance burden on businesses.
The Cabinet note covering comprehensive changes across the two Acts has been finalised by MCA. “The forms are being rationalised, and more action on decriminalisation is being proposed for greater ease of doing business,” a senior official expressed.
The government can carry the Insolvency and Bankruptcy Code Amendment Bill, also under the Ministry of Corporate Affairs (MCA), in the second half of the ongoing Budget session.
As per the senior official, “We have accepted most of the recommendations made by the select committee on the proposed Bill.”
The ministry can propose amendments to all the acts controlling professional services, along with Chartered Accountants (CAs), Cost Accountants, and Company Secretaries (CS). The revision is as per the suggestions from a high-level committee to form a global multidisciplinary practices firm in India.
Under a single firm structure, professionals such as CAs, CS, lawyers, and actuaries could not work as mentioned under Indian regulations, and this restricts collaboration and the ability to propose integrated services such as those furnished by international firms. Such concerns can be addressed by the government via revising its legislation.
MCA via the revisions to the Companies Act was acknowledging to furnish authority to the National Financial Reporting Authority to delegate some of its functions outside its executive board to create a division of its investigative and disciplinary functions.
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MCA had revised the Competition Act in 2023, bringing in provisions to maintain the new-age economy, like deal value thresholds, and business-friendly measures like settlement and commitment options for violators. The same specifies an overhaul of all corporate legislations under the MCA is on the anvil.
The amendments are in line with the opinion of the government that comprises a “light-touch regulatory framework based on principles and trust” that will release productivity and employment.
The Companies Law Review Committee had finalised its recommendations towards revision in the Companies Act over two years ago. After that, more revisions have been incurred in the Bill. Such revisions have been incorporated in the Cabinet note finalised via the MCA.
Source: Business Standard
