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Confident that Parliament will pass changes in companies law: FM

Mar 6, 2020, 12:25 IST
PTI
New Delhi, Mar 6 () Finance Minister Nirmala Sitharaman on Friday said she was confident that Parliament would pass pass the amendments to the companies law with focus on decriminalisation of various provisions.

Earlier this weak, the cabinet approved 72 changes to the companies law as the government aims further improvement in the companies law.

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"I am sure Parliament in its wisdom will pass it...," the minister said at the inaugural session of colloquium on 'Judicial Sensitisation on Insolvency Law and Associated Best Practices' organised by National Company Law Appellate Tribunal (NCLAT).

Sitharaman, who is also the Corporate Affairs Minister, further said it is the commitment of the government that wealth creators - small, medium, big or large - will be treated with respect.

"...there shall be trust of the government in these entrepreneurs," she added.

The amendments in the Companies Act, 2013, also aims at reduction in penalties for certain offences as well as in timeline for rights issues, relaxation in corporate social responsibility (CSR) compliance requirements and creation of separate benches at the NCLAT.

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Sitharaman further said India made a big difference to itself by passing the Insolvency and Bankruptcy Code (IBC) three years ago.

"In passing this legislation, one thing was kept in mind and also made sure was that associated, related institutions were simultaneously quickly placed on ground.

"...So if you really want to talk about India crossing that threshold of being nimble at bringing in legislations and related institutions also, IBC is a classic example," the minister said.

A bill to further to amend the Insolvency and Bankruptcy Code, 2016, is listed in the Lok Sabha for passage and consideration. NKD ANSANS

(This story has not been edited by www.businessinsider.in and is auto–generated from a syndicated feed we subscribe to.)
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