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New Delhi: The Ministry of Corporate Affairs has extended by a year the tenure of the company law committee that advises on changes needed in the Companies Act and the Limited Liability Partnership Act.

The committee, led by the secretary in the ministry, has been instrumental in key amendments brought out in the regulatory framework in recent years including the decriminalization of the Companies Act.

An official order said that the committee’s term stands extended by one year up to 16, September 2023. The panel, originally formed in 2019, has already been extended twice. The panel is in the nature of a standing committee which recommends measures needed to be adopted from time to time depending on the need of the hour.

Earlier this year, the committee recommended major changes to the Companies Act aimed at giving more flexibility to investors for raising capital in and strengthening the framework of statutory audit. The committee also proposed allowing companies to issue fractional shares and discounted shares as part of efforts to improve ease of doing business. Allowing businesses to issue fractional shares, a practice now prohibited under the Companies Act, will help retail investors access high-value shares.

These proposals are currently under the examination of the ministry for legislative work.

Key members of the committee include former Lok Sabha secretary general TK Viswanathan, Kotak Mahindra Bank managing director and chief executive officer Uday Kotak, Shardul Amarchand Mangaldas & Co. executive chairman Shardul Shroff and former president of Institute of Chartered Accountants of India Amarjit Chopra.

ABOUT THE AUTHOR

Gireesh Chandra Prasad

Gireesh has over 22 years of experience in business journalism covering diverse aspects of the economy, including finance, taxation, energy, aviation, corporate and bankruptcy laws, accounting and auditing.
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