Govt decriminalises Companies Act to promote greater ease of doing business

The bill, passed on Saturday in the Lok Sabha, comes at a time when companies are reeling under stress due the coronavirus (Covid-19) pandemic

The Companies Bill has decriminalised 48 sections by removing or reducing penal provisions and omitting imprisonment for various offences that were considered procedural and technical in nature, a move that will help corporates in ease of doing business.
 

The Bill, passed on Saturday in the Lok Sabha, comes at a time when companies are reeling under stress due the Covid-19 pandemic. Finance and Corporate Affairs Minister Nirmala Sitharaman said decriminalisation of various provisions under the companies law will also help small firms by reducing the litigation burden on them.
 

The Bill has proposed doing away with imprisonment for nine offences,