The government has created a committee to look at recategorization of certain offences under the Companies Act as civil offences as well as review other provisions of the Companies Act and the Limited Liability Partnerships Act 2008.
The company law committee which will be chaired by Injeti Srinivas, secretary of the corporate affairs ministry will look into key issues including the introduction of a settlement mechanism for offences under the companies act as well as de-clogging the National Company Law Tribunals and measure to improve the functioning of statutory bodies under the Companies Act including the Serious Frauds Investigations Office (SFIO), The Investor Education and Protection Fund Authority (IEPFA) and the National Financial Reporting Authority (NFRA).
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The government had recategorized 13 offences under Companies act as civil offences through an amendment passed in the budget session of Parliament. Finance and Corporate affairs minister Nirmala Sitharaman had also announced that the government would not seek to pursue criminal against individuals for violations of CSR provisions.
Source: Economic Times
