BT Buzz: Companies Act amendments aim to curb fraud, increase accountability
Among 40-odd amendments brought about in the Companies Act 2013, the most notable ones relate to better governance and measures to curb corporate frauds
- Aug 23, 2019,
- Updated Aug 23, 2019 4:45 PM IST
It's raining changes in the Companies Act 2013. The government managed to pass over 50 amendments in the last parliament session in the laws governing companies. While the government touts some of these changes to improve ease of doing business, the others are clearly aimed at tightening the noose around unscrupulous businesses.
From 40-plus amendments made in the Companies Act 2013, it comes across that the government is shifting the focus more on execution of the law. "If you see the amendments, the government is trying to make the execution very strict. They are increasing the penalties and offences bringing them in line with foreign laws," says Mamta Binani, Past President of The Institute of Company Secretaries of India (ICSI), a high court lawyer and an Insolvency Professional.
Atul Pandey, Partner, Khaitan & Co believes the changes have been introduced to ensure more accountability and better enforcement to strengthen the corporate governance norms and compliance management in the Indian corporate sector.
It's raining changes in the Companies Act 2013. The government managed to pass over 50 amendments in the last parliament session in the laws governing companies. While the government touts some of these changes to improve ease of doing business, the others are clearly aimed at tightening the noose around unscrupulous businesses.
From 40-plus amendments made in the Companies Act 2013, it comes across that the government is shifting the focus more on execution of the law. "If you see the amendments, the government is trying to make the execution very strict. They are increasing the penalties and offences bringing them in line with foreign laws," says Mamta Binani, Past President of The Institute of Company Secretaries of India (ICSI), a high court lawyer and an Insolvency Professional.
Atul Pandey, Partner, Khaitan & Co believes the changes have been introduced to ensure more accountability and better enforcement to strengthen the corporate governance norms and compliance management in the Indian corporate sector.