MCA issues Report of the Company Law Committee
MCA recently issued the report of the Company Law committee which was constituted by MCA to make recommendations on changes aimed at facilitating and promoting greater ease of doing business as well as ensuring effective implementation of the Companies Act, 2013 and the Limited Liability Partnership Act, 2008. Recommendations of the committee include enabling issuance of fractional shares, easing norms for distressed companies to raise funds, recognising special purpose acquisition companies as well as permitting their listing on stock exchanges, prohibiting the conversion of co-operative societies into a company and replacing requirement of furnishing affidavits with the filing of self-certification/ declaration.
Others suggestions of the panel include allowing certain companies to revert to the financial year followed in India, facilitating certain companies to communicate with their members in only electronic form, allowing companies to hold general meetings in virtual, physical or hybrid modes, and creating an electronic platform for maintenance of statutory registers by companies. Stakeholders may submit his comments/suggestions by 6th May, 2022.
