Cabinet clears bill to amend companies law

"The proposed amendments will lead to further promotion of ease of doing business, de-clogging of National Company Law Tribunal and Special Courts," an official release said.

New Delhi: The Union Cabinet on Wednesday approved the Companies (Amendment) Bill, 2019 with an aim to increase ease of doing business and strengthening corporate governance.

The Bill, when passed as an Act, would replace the Companies (Amendment) Second Ordinance, 2019 with certain modifications.

"The proposed amendments will lead to further promotion of ease of doing business, de-clogging of National Company Law Tribunal and special courts, strengthening corporate governance standards and strengthening of enforcement, with focus on serious cases of violation of the Act and enhanced compliance by corporates," an official notification said.

As per the government, the amendments will benefit law-abiding corporates while simultaneously plugging gaps in the corporate governance and compliance framework enshrined in the Companies Act, 2013.

The government would next introduce the Companies (Amendment) Bill, 2019 in parliament.

Among other decisions, the Cabinet on Wednesday also cleared the introduction of seven amendments to the Insolvency and Bankruptcy Code (IBC) in Parliament, including raising maximum resolution time frame limit to 330 days from the current 270 days.