Govt to promulgate an ordinance to bring 'urgent' changes to Companies Act

The government plans to put in place a stricter disclosure framework for independent directors

The government is set to promulgate an ordinance to bring amendments to the Companies Act with the ministry of corporate affairs moving a draft Cabinet note in this regard, according to sources.

The draft note in its introduction says the ministry is seeking “urgent changes to the Companies Act” based on the recommendations of the high-level committee that reviewed offences in the legislation. The ministry says these amendments are being sought to “strengthen the regulatory framework”. 

The ministry has drafted the note, being circulated to other ministries for consultations, following an internal review of the panel’s recommendations. The committee, set