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Corporate Laws (Amendment) Bill in Lok Sabha
A bill to amend the Limited Liability Partnership Act, 2008 and the Companies Act, 2013 has been introduced to simplify compliance and improve ease of doing business. The bill has been referred to a Joint Parliamentary Committee for detailed examination.
Companies and LLP Amendment Bill:
| Dimension | Key Details |
|---|---|
| Acts Amended | Amends Limited Liability Partnership Act 2008 and Companies Act 2013 |
| Purpose | Provides ease of doing business by simplifying compliance and reducing regulatory burden |
| Target Entities | Applies to one person companies small companies start up companies and producer companies |
| Investment Facilitation | Provides updated regulatory framework to align with evolving financial environment and corporate governance |
| Regulatory Streamlining | Provides rationalisation of compliance requirements including restructuring and exit processes |
| CSR Provision | Provides increase in profit threshold for mandatory CSR spending to 10 crore rupees |
| NFRA Status | Provides corporate status to National Financial Reporting Authority with expanded adjudicatory powers to issue directions to auditors |
| Share Buyback | Provides allowance for specified companies to conduct two share buybacks in one year with minimum six month gap |
| Fast Track Mergers | Provides simplified merger process for specified companies |
| Decriminalisation | Provides replacement of several minor corporate offences with monetary penalties |
| Conversion of Trusts | Provides framework for specified trusts including alternative investment funds to convert into limited liability partnerships |
| LLP Feature | Provides limited liability structure where partner liability is restricted to contribution |
| Audit Exemption | Provides exemption for certain small companies from mandatory audit based on turnover threshold |
| Concerns | Includes dilution of CSR provisions impact on legislative executive balance and reduced parliamentary oversight |
| Legislative Status | Referred to Joint Parliamentary Committee for detailed examination |