The ministry is aiming to introduce the amendments in the winter session of Parliament, likely in November-December.
“The changes would be based on the theme of ease of doing business,” one of the persons told ET on condition of anonymity, indicating that compliance burden on firms would be reduced further.
Various provisions of the Companies Act are being reviewed, with an intention to ease restrictive provisions and add new ones, taking into account contemporary requirements. The specific amendments would be finalised after wide-ranging deliberations, according to the person. The provision for risk management committees, to be set up by companies, would be crucial for detecting and resolving risks. These could have an oversight function. The extant Companies Act doesn’t provide for the formation of any such panel by companies.
Deliberations are taking place on revisiting provisions relating to the disqualification of directors, procedure for the resignation of key managerial personnel and strengthening of the merger and amalgamation framework, the people said.
Some of the other changes that are being discussed pertain to allowing companies to communicate with their members in only electronic form; replacing the requirement of affidavits for various purposes with self-declaration; permitting companies to hold general meetings in different modes–virtual, physical or hybrid; electronic platform for maintenance of statutory registers by companies; and easier restoration of companies stuck off from the register earlier upon meeting certain conditions.