Companies Law committee to focus on ease of doing business

Government's high-level panel, set up to address issues related to the new companies law, will soon finalise its report that is expected to suggest ways to further improve ease of doing business.

The committee, which has met more than eight times, has "carefully analysed" the suggestions received from various quarters and many of them have been accepted, a source said. As part of efforts to address concerns expressed about certain aspects of the Companies Act, 2013, the Ministry had set up the high-level panel in June last year.

It has received more than 2,000 suggestions from various stakeholders. "The report is in final stages... Each suggestion has been carefully analysed and many of the suggestions have been accepted," the source said.

The focus is on "easing of doing business and facilitating growth of capital formation," he added.

Already, a slew of changes have been made to the Companies Act, 2013 - whose most provisions came into effect from April 1, 2014. Also, various rules have been amended. As per the terms of reference, the panel would "make recommendations to the government on issues arising from the implementation of the Companies Act, 2013".

It would also examine the recommendations received from the Bankruptcy Law Reforms Committee, Committee on CSR, Law Commission and other agencies. The eight-member panel has representatives from the judiciary and the industry.

The panel has constituted six groups to broad base the consultations process.

While carrying out its work, the committee can invite subject matter experts as well as people from Securities and Exchange Board of India (Sebi), Reserve Bank of India (RBI) and Comptroller and Auditor General (CAG) as needed.

In May 2015, Parliament approved 16 amendments to the Act, including on winding up of companies, board resolutions and bail provisions. The Act has more than 450 clauses.