Why is it in the news ?
To facilitate and strengthen the ease of doing business and ease of living in the country, the particular recommendation was made by the Company Law Committee.
- The Company Law Committee was constituted by the Ministry of Corporate Affairs (MCA) on 18th September 2019.
- It was constituted for examining and making recommendations to the Government on various provisions and issues pertaining to the implementation of the Companies Act, 2013 and the Limited Liability Partnership Act, 2008 and other related matters.
What are the Salient Features of Companies Act, 2013 ?
- Introduction of National Company Law Tribunal as a quasi-judicial body in India adjudicating issues related to companies.
- The Company Law board was replaced.
- Provision for setting up of a National Financial Reporting Authority that seeks to establish and enforce the accounting and auditing standards for the auditors.
- The companies which didn’t engage in business for consecutive two years were designated as Dormant Companies.
- Mandatory constitution of CSR committees, CSR policies.
- Unique concept of Single Person Company comprising One director and one shareholder.
- Statutory mandate to appoint independent directors.
- Mandatory women directors for a specific class of companies.
- Provision of self-regulation pertaining to disclosures, as a move to increase transparency.
- Rotation of audit agencies and auditors in respect to audit of public companies.
- Mergers and acquisitions got streamlined and the processes were smoothened.
Non Compoundable Offences
- Charges against the accused can be withdrawn.
- The charges against the accused cannot be withdrawn.
Nature of the Crime
- The nature of the crime is not so serious.
- The nature of the crime is serious.
Compoundability of the Offence
- Offence compoundable by with permission or without permission of the court.
- The offence cannot be compounded rather only quashed.
Impact on Persons
- Impacts only private persons.
- Affects both, private people as well as the society at large.
Who can file the Case ?
- The case is generally filed by a private person.
- The case is generally filed by the state.