Author: Prachi Goel

The Companies (Amendment) Bill, 2020: Decriminalizing offences under the Companies Act, 2013

Governmental authorities in India have, from time to time, implemented various measures to facilitate ease of doing business for companies operating in India including, inter alia, by way of amendments to the Companies Act, 2013 (the “Act”). In the past 1 (one) year, these reforms have focused on introducing new mechanisms for swift adjudication of offences, and decriminalization and rationalization of criminal penalties, particularly in relation to minor, technical or procedural non-compliances under the Act.

The objective of decriminalization and recategorization of offences that was introduced by the Companies (Amendment) Act, 2019 is now sought to be augmented by the Companies (Amendment) Bill, 2020 (the “CAB 2020”) which was recently presented in the Lok Sabha on March 17, 2020. CAB 2020 has, amongst other matters, proposed amendments in respect of decriminalization of various compoundable offences and rationalization of penalties prescribed under the Act. CAB 2020 is currently awaiting legislative consideration.

In this note, we discuss the continuing efforts of the Indian governmental authorities towards streamlining the processes for dealing with certain non-compliances under the Act, and analyze if the critical changes proposed by CAB 2020 for further decriminalization of offences and alteration of penalties under the Act is a step in the right direction.

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COVID-19 Pandemic: What to (or not to) do – A Quick Guide for Decision Makers

Following the outbreak of COVID-19 pandemic, the role of directors and senior management in taking appropriate measures, addressing concerns of various stakeholders and ensuring business continuity has become more important than ever. Directors and senior management should not only be cognizant of their duties and responsibilities during these turbulent times but also be mindful of the immediate and long term repercussions of their decisions on their respective businesses.

In recent times, there has been a deluge of orders, guidelines and notifications that have been issued by the Central government, state governments and various regulators in India to guide its citizens and the business corporations through the issues evolving in the course of COVID-19 pandemic. This note briefly sets out the key corporate governance and other related matters that the decisions makers should consider when responding to the COVID-19 pandemic and guiding their businesses through the lockdown and thereafter.

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