Finance minister Nirmala Sitharaman has announced some new rules that have tightened the noose around companies. The intention behind his was “declogging the National Company Law Tribunal”, and strengthen the provisions of enforcement, as tweeted by the newly elected Finance Minister of India.
A number of new rules have been introduced, which seem to have made the atmosphere a bit tense. The Parliament has also gone ahead and cleared the rules after the Rajya Sabha passed the bill by voice vote.
What are the new rules that the companies have to follow? Read on and find out!
The Companies (Amendment) Bill, 2019
The Finance Minister, Nirmala Sitharaman has revealed that the section 135 of the Act was undergoing changes that will give out penal provision if there is non-compliance of CSR provisions.
Taking a jibe at the UPA, she wondered if the older act was not given much thought, and was passed in a hurry. She announced that the new act is undergoing a number of major changes.
Sitharaman said, “It was easy for people to interpret that either we comply or we give an explanation and get away with it. Now that is not happening because Section 135 (of the Companies Act) is being amended to provide specific penal provision in case of non-compliance.”
She also tweeted that the new and changed bill will be excluding routine matters out of the National Company Law Tribunal, and thus clearing its route…..Read More>>