New Delhi: The Ministry of Corporate Affairs has extended by one year the tenure of the Company Law Committee which advises on necessary changes in the Companies Act and the Limited Liability Partnership Act.
The secretary-led committee in the ministry has been instrumental in the major amendments brought in the regulatory framework in recent years, including criminalization of the Companies Act.
An official order said that the tenure of the committee has been extended by one year till September 16, 2023. The panel, originally constituted in 2019, has already been extended twice. The panel is in the nature of a Standing Committee which recommends the necessary measures to be adopted from time to time based on the need of the hour.
Earlier this year, the committee recommended major changes to the Companies Act, aimed at giving investors greater flexibility to raise capital and strengthening the framework for statutory audits. The committee also proposed to allow companies to issue fractional shares and discounted shares as part of efforts to improve ease of doing business. Allowing businesses to issue fractional shares, which is now prohibited under the Companies Act, will help retail investors access higher-value shares.
These proposals are currently under consideration of the Ministry for legislative work.
Prominent members of the committee include TK Viswanathan, former Secretary General of the Lok Sabha, Uday Kotak, MD and CEO of Kotak Mahindra Bank, Shardul Shroff, executive chairman of Shardul Amarchand Mangaldas & Co and Amarjit Chopra, former chairman of the Institute of Chartered Accountants of India.
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