| Background: 1. To promote greater ease of doing business for law-abiding corporates in the country. 2. To streamline the operation of certain provisions of the Companies Act, 2013 through clarificatory amendments and other drafting changes |
| S. No. | Proposal |
| I. | Allowing certain companies to revert to the financial year followed in India; |
| II. | Facilitating certain companies to communicate with their members in only electronic form; |
| III. | Recognising issuance and holding of fractional shares, Restricted Stock Units and Stock Appreciation Rights; |
| IV. | Easing the requirement of raising capital in distressed companies; |
| V. | Replacing the requirement of furnishing affidavits with the filing of self-certification/ declaration |
| VI. | Clarifying the inclusion of ‘free reserves’ while determining the limit for buying back of a company’s equity shares; |
| VII. | Prohibiting companies from recording trusts on their register of members; |
| VIII. | Allowing companies to hold general meetings in virtual, physical or hybrid modes; |
| IX. | Creating an electronic platform for maintenance of statutory registers by companies; |
| X. | Clarifying provisions relating to Investor Education and Protection Fund; |
| XI. | Strengthening the National Financial Reporting Authority; |
| XII. | Reviewing and strengthening the audit framework and introducing mechanisms to ensure the independence of auditors; |
| XIII. | Standardising the manner for auditors to provide qualifications; |
| XIV. | Recognising and providing an enabling framework for the constitution of Risk Management Committees; |
| XV. | Clarifying the tenure of independent directors; |
| XVI. | Revising provisions relating to the disqualification and vacation of the office of directors; |
| XVII. | Clarifying the procedure for the resignation of key managerial personnel; |
| XVIII. | Strengthening the provisions relating to mergers and amalgamations; |
| XIX. | Easing the restoration of struck off companies by enabling the Regional Director to allow restoration of names of companies in certain instances; |
| XX. | Recognising Special Purpose Acquisition Companies and allowing such companies, which are incorporated in India, to list on permitted exchanges; |
| XXI. | Prohibiting the conversion of co-operative societies into a company; |
| XXII. | Modernising enforcement and adjudication activities through electronic mode; |
| XXIII. | Strengthening the incorporation and governance framework for Nidhis; |
| XIV. | Removing ambiguities from present provisions under the Companies Act, 2013 through changes of drafting & consequential nature. |
Last date for comments: May 15, 2022
Source: Notice inviting comments on the Report of Company Law Committee dated May 10, 2022
Reference: Report of the Company Law Committee dated April 12, 2022