Injeti Srinivas heads committee on review of penal provisions of Company Act 2013

The committee, chaired by Corporate Affairs Secretary Injeti Srinivas, has recently submitted final report on review of penal provisions of Company Act 2013 to the Union Minister for Finance & Corporate Affairs, Arun Jaitley. 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 report makes recommendations for de-clogging the National Company Law Tribunal (NCLT) through significant reduction in compounding cases before the Tribunal. The Committee was constituted by the Union government in July 2018 to review the existing framework dealing with offences under the Companies Act, 2013 and related matters and make recommendations to promote better corporate compliance.