The committee on review of penal provisions of Company Act 2013 today submitted its final report to Finance and Corporate Affairs Minister Arun Jaitley in New Delhi.
The Committee was constituted by the government last month to review the existing framework dealing with offences under the Companies Act, 2013 and related matters and make recommendations to promote better corporate compliance. An official release said, the Committee undertook a detailed analysis of all penal provisions, which were then broken down into eight categories based on the nature of offences.
The Committee recommended that the existing rigour of the law should continue for serious offences, covering six categories, whereas for lapses that are essentially technical or procedural in nature, mainly falling under two categories may be shifted to in-house adjudication process.
The committee has made several recommendations related to corporate compliance and corporate governance. It has also recommended, restructuring of Corporate Offences to relieve Special Courts from adjudicating routine offences.