The Government placed the Companies (Amendment) Bill, 2016 to amend the Companies Act, 2013, passed 3 years ago, proposing nearly 100 amendments, purported to be for the ease of doing business. The Company Law Committee (CLC) was assigned the task to study and provide solutions to the issues arising out of implementation of Companies Act, 2013 as well as on the recommendations received from Bankruptcy Law Committee, CSR committee, Law Commission, professional bodies, chambers and other agencies.
As per the Statement of Objects and Reasons of the Amendment Bill, the proposed changes are broadly aimed at:
- addressing difficulties in implementation owing to stringent compliance requirements;
- facilitating ease of doing business in order to promote growth with employment;
- harmonisation with accounting standards, the Securities and Exchange Board of India Act, 1992 and the regulations made thereunder, and the Reserve Bank of India Act, 1934 and the regulations made thereunder;
- rectifying omissions and inconsistencies in the Act.