The Modi government on Wednesday constituted a 11-member panel to improve the functioning of the National Company Law Tribunal (NCLT) and make recommendations on various issues pertaining to implementation of the Companies Act as well as the Limited Liability Partnership Act.
The Company Law Committee, headed by Corporate Affairs Secretary Injeti Srinivas, would suggest measures for removing any bottlenecks in the overall functioning of statutory bodies like the Serious Fraud Investigation Office (SFIO), Investor Education and Protection Fund Authority (IEPFA) and National Financial Reporting Authority (NFRA).
The other members of the panel include Uday Kotak, MD of Kotak Mahindra Bank; Ajay Bahl, Founder and Managing Partner at AZB & Partners, Advocates & Solicitors; Xpro India Chairman Sidharth Birla; Shardul S Shroff, Executive Chairman at Shardul Amarchand Mangaldas & Co; and T K Viswanathan, ex-secretary general, Lok Sabha.
“The committee would submit its recommendations in phases and subject-wise to the government from time to time as may be decided by the chairperson. It will have tenure of one year from the date of its first meeting,” according to a statement released by the Ministry of Corporate Affairs.
The panel has been formed in line with the government’s objective of promoting ease of living in the country by providing ease of doing business to law-abiding corporates, fostering improved corporate compliance for stakeholders at large and also to address emerging issues on the working of corporates in the country, the Ministry said.
The committee would analyse the nature of the offences under Company Act, 2013 and submit its recommendations as to whether any of the offences could be re-categorised as ‘civil wrongs’ along with measures to optimise the compliance requirements under the law.
Besides, the panel will examine the feasibility of introducing settlement mechanism, deferred prosecution agreement, etc., within the fold of the Companies Act, 2013, and study the existing framework under the Limited Liability Partnership Act, 2008 and suggest measures to plug the gaps, if any, while at the same time enhancing the ease of doing business.
Source: Business Today, September 18, 2019