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
IX.Creating an electronic platform for maintenance of statutory registers by
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
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