Introduction to the Companies Amendment Bill
The Ministry of Corporate Affairs (MCA) has prepared a Cabinet note for the Companies Amendment Bill, which is likely to be introduced in the Parliament's winter session. The bill aims to enhance the ease of doing business, focus on decriminalization, and provide necessary clarifications.
Key Focus Areas of the Amendment Bill
- The bill seeks to simplify provisions related to establishing a domestic multidisciplinary practices firm.
- It proposes to allow varied professionals, such as Chartered Accountants (CAs), Company Secretaries (CSs), lawyers, and actuaries, to collaborate under a single firm structure.
Development of Domestic Firms
- An MCA committee led by secretary Dipti Gaur Mukherjee is working on developing an Indian counterpart to the international "Big Four" firms.
- The concept note by the government highlights current restrictions preventing firms from partnering with other professionals, which puts them at a disadvantage compared to international firms.
Enhancing NFRA's Capabilities
- The bill considers granting more powers to the National Financial Reporting Authority (NFRA) to delegate functions beyond its executive board.
- This change aims to separate NFRA's investigative and disciplinary roles, addressing concerns of potential bias as noted by the Delhi High Court.
Regulatory Framework and Technological Adaptation
- Finance Minister Nirmala Sitharaman emphasized a "light-touch regulatory framework" to align with technological advancements and global policy changes.
- This approach aims to enhance productivity and employment by updating outdated regulations.
Conclusion
The Companies Law Review Committee had finalized its recommendations over two years ago, and additional updates have been included in the Cabinet note. The Bill primarily focuses on improving the ease of doing business, decriminalizing certain aspects, and clarifying existing provisions to adapt to evolving business environments.
