Headlines
Cabinet approves changes to Companies Act
Cabinet
approves changes to Companies Act
New Delhi, April 29 To make it easy to do business in India, the
union cabinet on Wednesday rationalised certain documentation procedures
required for companies.
The cabinet approved "doing away with the requirement of filing a
declaration by a company before commencement of business or exercising its
borrowing powers", a cabinet communique said.
It also approved "rationalizing the procedure for laying draft
notifications granting exemptions to various classes of companies or modifying
provisions of the act in Parliament," the statement added.
These amendments to the Companies (Amendment) Bill, 2014 "will address
issues related to ease of doing business and put in place a speedier process
for approval of draft notifications for providing exemptions etc. from specific
provisions of the act to a class of companies", the ministry of corporate
affairs said in a statement here.
Commenting on the cabinet decision, Yogesh Sharma, partner, Grant Thornton
India, said: "As per 2014 World Bank data, India ranked at 142 out of 189,
which is disappointing at best and the proposed amendment will move us a small
step closer to fulfilling the prime minister's 'Make in India' campaign."
"The second amendment relates to fast-tracking the procedure for
notifications issued under the Companies Act but the complete details of the
proposed changes have not been made available. The proposal to ensure speedier
issue of final notifications should be certainly favorable for all," he
said in a statement issued here.