Get Instant Loan up to ₹10 Lakh!
The government on Wednesday set up a panel to improve the ease of doing business by liberalizing the Companies Act and the Limited Liability Partnership (LLP) Act.
The 11-member panel, which has a broad mandate, will review the entire ecosystem of corporate regulation, including laws and the regulatory bodies attached to the corporate affairs ministry.
An official statement from the corporate affairs ministry said the move was also aimed at fostering compliance as well as to address the emerging issues affecting businesses. The panel led, by corporate affairs secretary Injeti Srinivas, will examine if offences under the statutes dealing with companies and LLPs could be reclassified as ‘civil wrongs’.
The panel will also explore the feasibility of bringing new schemes such as settlement mechanism and deferred prosecution agreement—a kind of amnesty subject to the defendant meeting certain conditions, within the ambit of the company law. It will also try to address any shortcomings in the LLP Act, as per the mandate given to the panel.
The committee will also make recommendations to improve the functioning of the National Company Law Tribunal, which looks into all cases under the Companies Act, including bankruptcy resolution, approval of mergers and acquisitions and shareholder disputes relating to mismanagement and oppression.
“The Committee shall submit its recommendations in phases and subject-wise to the government from time to time as may be decided by the chairperson of the committee,” said the statement.
The government also wants to identify factors that affect functioning of agencies like the Serious Fraud Investigation Agency (SFIO) and the National Financial Reporting Authority (NFRA).
The government earlier this year amended the Companies Act to liberalize the penalty for procedural and minor offences and changed the rules to make access to capital easier and cheaper for businesses.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.