In
June 2015, the Government constituted
the Companies Law Committee (CLC) to make recommendations arising from the implementation
of the Companies Act, 2013. Yesterday, the CLC
issued its report containing detailed recommendations for reforms relating
to the Companies Act as well as several rules issued under the Act. A quick
review of the report indicates that it has extensively addressed several issues
across the legislation and has made several suggestions for reform on various
topics. The overall theme is to streamline the provisions and also to make the
legislation more facilitative to doing business. There was concern previously that
the Companies Act, 2013 had imposed too many restrictions that made it impossible
to carry out legitimate business activity. We hope to discuss some of the more
specific recommendations of the CLC on this Blog in due course.
June 2015, the Government constituted
the Companies Law Committee (CLC) to make recommendations arising from the implementation
of the Companies Act, 2013. Yesterday, the CLC
issued its report containing detailed recommendations for reforms relating
to the Companies Act as well as several rules issued under the Act. A quick
review of the report indicates that it has extensively addressed several issues
across the legislation and has made several suggestions for reform on various
topics. The overall theme is to streamline the provisions and also to make the
legislation more facilitative to doing business. There was concern previously that
the Companies Act, 2013 had imposed too many restrictions that made it impossible
to carry out legitimate business activity. We hope to discuss some of the more
specific recommendations of the CLC on this Blog in due course.