The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the Companies (Second Amendment) Bill, 2019 to amend the Companies Act, 2013.
The Bill would remove criminality under the Act in case of defaults which can be determined objectively and which, otherwise, lack the element of fraud or do not involve larger public interest, read a statement.
"This would also lead to further de-clogging of the criminal justice system in the country. Moreover, the Bill would also further ease of living for law-abiding corporates," it added.
Earlier, the Companies (Amendment) Act, 2015 amended certain provisions of the Act to remove difficulties faced in the implementation of various provisions of the Act.
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