The committee has suggested amendments to 46 penal provisions, "so as to either remove criminality, or to restrict the punishment to only fine, or to allow rectification of defaults through alternative methods", an official release said on Monday.
The proposals are aimed at further de-clogging of the criminal justice system in the country, it added.
As per the committee's report submitted to Corporate Affairs Minister Nirmala Sitharaman, 23 out of the 66 remaining compoundable offences under the Companies Act could be recategorised.
Such offences could then be dealt with in-house adjudication framework wherein these defaults would be subject to a penalty levied by an adjudicating officer.
"Omitting, altogether, 7 compoundable offences; limiting punishment for 11 compoundable offences to only fine by removing provision for imprisonment and recommending that 5 offences be dealt under alternative frameworks," the release said citing the report.
According to the report, there could be reduction in the quantum of penalties in respect of six provisions, which were shifted to the in-house adjudication framework through the recent amendments to the Act.
Earlier this year, the corporate affairs ministry de-criminalised 16 minor procedural/ technical lapses under the Act into 'civil wrongs', the release said.
The Company Law Committee is headed by Corporate Affairs Secretary Injeti Srinivas. RAM BAL