Business Other News 16 Jul 2018 Centre may ease Comp ...

Centre may ease Company Act

DECCAN CHRONICLE.
Published Jul 16, 2018, 1:22 am IST
Updated Jul 16, 2018, 1:22 am IST
The high-level panel, chaired by Corporate Affairs Secretary Injeti Srinivas, would submit its report in 30 days to the government.
The Committee shall submit its report within thirty days to the Central government for consideration of its recommendations.
 The Committee shall submit its report within thirty days to the Central government for consideration of its recommendations.

New Delhi: The Centre has set up a committee to look into ‘de-criminalisation’ of some provision in the Company Act, so that courts are freed to look only at serious crimes.

It will look whether any non-compoundable offences which is offence punishable with imprisonment only may be made compoundable. It will also look whether in some crimes only penalty could be imposed by an authority and only after non-compliance of the order it should be categorised as an offence triable by a special court.

 

The Ministry of Corporate Affairs (MCA)  seeks to review offences under the Companies Act, 2013 as “some of the offences may be required to be decriminalised and handled in an in-house mechanism, where a penalty could be levied in instances of default.”

“It has been decided that the existing compoundable offences in the Companies Act — 2013 viz. offences punishable with fine only or punishable with fine or imprisonment or both may be examined and a decision may be taken as to whether any of such offences may be considered as ‘civil wrongs’ or ‘defaults’ where a penalty by an adjudicating officer may be imposed in the first place and only consequent to further non-compliance of the order of such authority will it be categorised as an offence triable by a special court,” said the ministry in a statement. This would also allow the trial courts to pay more attention on offences of serious nature, it said.

 

“It is also required to be seen as to whether any non-compoundable offences viz. offence punishable with imprisonment only, or punishable with imprisonment and also with fine under the Companies Act, 2013 may be made compoundable,” said the statement.

The Committee shall submit its report within thirty days to the Central government for consideration of its recommendations.

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