{"id":222793,"date":"2019-12-03T17:00:43","date_gmt":"2019-12-03T11:30:43","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=222793"},"modified":"2019-12-03T16:47:15","modified_gmt":"2019-12-03T11:17:15","slug":"parliament-update-company-law-committee-recommends-decriminalisation-of-compoundable-offences-under-companies-act","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/12\/03\/parliament-update-company-law-committee-recommends-decriminalisation-of-compoundable-offences-under-companies-act\/","title":{"rendered":"Parliament Update | Company Law Committee recommends &#8212; decriminalisation of compoundable offences under Companies Act"},"content":{"rendered":"<p style=\"text-align: justify;\">Company Law Committee, constituted by the Ministry of Corporate Affairs (MCA) vide order dated 18-09-2019, has submitted the first phase report to the Union Finance &amp; Corporate Affairs Minister Smt. Nirmala Sitharaman on 18-11-2019, proposing amendments in the Companies Act, 2013 for further <span style=\"color: #0000ff;\"><strong>decriminalising the offences under the said Act and to facilitate ease of doing business and ease of living.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Anurag Singh Thakur, Minister of State for Finance &amp; Corporate Affairs, in a written reply to a question in Rajya Sabha submitted his response today.<\/p>\n<p style=\"text-align: justify;\">Company Law Committee was constituted for examining and making recommendations to the Government on various provisions and issues pertaining to the implementation of the Companies Act, 2013 and the Limited Liability Partnership Act, 2008 and other related matters.<\/p>\n<p style=\"text-align: justify;\">The <strong>main recommendations of the Committee with regard to decriminalization of compoundable offences are as under<\/strong>:-<\/p>\n<ol>\n<li style=\"text-align: justify;\">Re-categorising 23 offences out of the 66 remaining compoundable offences under the Act, to be dealt with in the in-house adjudication framework wherein these defaults would be subject to a penalty levied by an adjudicating officer.<\/li>\n<li style=\"text-align: justify;\">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;<\/li>\n<li style=\"text-align: justify;\">Reducing the quantum of penalties in respect of certain provisions, which were shifted to the in-house adjudication framework through the recently passed Companies (Amendment) Act, 2019;<\/li>\n<li style=\"text-align: justify;\">Retention of status-quo in case of the non-compoundable offences.<\/li>\n<\/ol>\n<hr \/>\n<p><strong>Ministry of Corporate Affairs<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>[Press Release dt: 03-12-2019]<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>[Source: PIB]<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Company Law Committee, constituted by the Ministry of Corporate Affairs (MCA) vide order dated 18-09-2019, has submitted the first phase report to <\/p>\n","protected":false},"author":8808,"featured_media":154904,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1188,2],"tags":[38643,38644,29973,38645],"class_list":["post-222793","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hot_off_the_press","category-news","tag-company-law-committee","tag-decriminalisation-of-compoundable-offence","tag-ease-of-doing-business","tag-ease-of-living"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ 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This was stated by Shri Anurag Singh Thakur, Union Minister of State for Finance & Corporate Affairs, in a written reply to a question in Rajya\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":198565,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/07\/16\/committee-constituted-to-review-offences-under-companies-act-2013\/","url_meta":{"origin":222793,"position":1},"title":"Committee constituted to review offences under Companies Act, 2013","author":"Saba","date":"July 16, 2018","format":false,"excerpt":"The Ministry of Corporate Affairs (MCA) has constituted a 10 Member Committee, headed by the Secretary of Ministry of Corporate Affairs, for review of the penal provisions in the Companies Act, 2013 may be setup to examine \u2018de-criminalisation\u2019 of certain offences. The MCA seeks to review offences under the Companies\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222275,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/11\/19\/company-law-committee-2019-submits-its-report-to-finance-minister\/","url_meta":{"origin":222793,"position":2},"title":"Company Law Committee-2019 submits its report to Finance Minister","author":"Bhumika Indulia","date":"November 19, 2019","format":false,"excerpt":"The Committee took note of the progress made consequent to the Companies (Amendment) Act, 2019, which had resulted in de-criminalisation of 16 minor procedural\/technical lapses under the Companies Act, 2013 into \u2018civil wrongs\u2019, and adopted a principle-based approach to further remove criminality, in case of defaults which can be determined\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":239110,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/11\/16\/companies-amendment-act-2020-a-step-in-the-right-direction\/","url_meta":{"origin":222793,"position":3},"title":"Companies (Amendment) Act, 2020: A step in the right direction?","author":"Bhumika Indulia","date":"November 16, 2020","format":false,"excerpt":"by Ananya Raghavendra\u2020and Eshvar Girish\u2020\u2020","rel":"","context":"In &quot;Op Eds&quot;","block_context":{"text":"Op Eds","link":"https:\/\/www.scconline.com\/blog\/post\/category\/op-ed\/legal-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/11\/compines-act.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/11\/compines-act.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/11\/compines-act.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/11\/compines-act.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/11\/compines-act.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":236431,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/09\/29\/presidential-assent-companies-amendment-act-2020-decriminalisation-of-offences-which-lack-element-of-fraud-or-involve-larger-public-interest\/","url_meta":{"origin":222793,"position":4},"title":"[Presidential Assent] Companies (Amendment) Act, 2020: Decriminalisation of offences which lack element of fraud or involve larger public interest","author":"Bhumika Indulia","date":"September 29, 2020","format":false,"excerpt":"The Companies (Amendment) Bill, 2020 received Presidential Assent on 28-09-2020. The Companies (Amendment) Act, 2020 Purpose: Based on the recommendations of the Company Law Committee and an internal review by the Government, it is proposed to amend various provisions of the Act to decriminalise minor procedural or technical lapses under\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":250575,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/01\/companies-amendment-act-2020-a-refreshing-change\/","url_meta":{"origin":222793,"position":5},"title":"Companies (Amendment) Act, 2020 \u2013 A Refreshing Change","author":"Bhumika Indulia","date":"July 1, 2021","format":false,"excerpt":"by Ankoosh Mehta*, Smruti Shah**, Neham Tayal***, Durga Agarwal\u2020, King Dungerwal\u2020\u2020 Cite as: 2021 SCC OnLine Blog Exp 52","rel":"","context":"In &quot;Cyril Amarchand Mangaldas&quot;","block_context":{"text":"Cyril Amarchand Mangaldas","link":"https:\/\/www.scconline.com\/blog\/post\/category\/experts_corner\/law-firm\/cam\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-52.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-52.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-52.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-52.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-52.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/222793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=222793"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/222793\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/154904"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=222793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=222793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=222793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}