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National News

Jul 26, 2019
8:55PM

Lok Sabha passes Companies (Amendment) Bill, 2019

File Pic: PTI
The Lok Sabha has passed The Companies (Amendment) Bill, 2019.  The Bill seeks to amend the Companies Act, 2013. It aims to tighten Corporate Social Responsibility compliance, transfer certain responsibilities to National Company Law Tribunal and recatgorise certain offences as civil offences. 

Under the Bill, any unspent annual CSR funds must be transferred to one of the funds under Schedule 7 of the Act like Prime Minister’s Relief Fund within six months of the financial year. The bill also seeks to empower Registrar of Companies to initiate action for removal of a company’s name if the latter is not carrying out business activities as per the Act.

The bill will replace the ordinance promulgated earlier in this regard. Replying to debate on the bill, Finance Minister Nirmala Sitharaman said, the bill will ensure further ease of doing business for the companies and provide better governance framework.

She said, the Minister said, it is a company-friendly bill and there is nothing adverse in the bill. Members from Congress, BJP, TMC, NCP and others participated in the discussion.

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