Announcement regarding Highlights made by the Companies (Amendment) Act 2020 by CL&CGC ICAI
October, 03rd 2020
The Companies (Amendment) Act, 2020 (herein after referred to as ‘the Amendment Act’) got the assent of Hon’ble President as on 28th September, 2020 and is thus operative since that date. It was passed by the Lok Sabha on 19th September, 2020 and by the Rajya Sabha on 22nd September, 2020.
There are amendments in 61 sections in the Act and 4 sections have been newly inserted which includes the provisions for Producer Companies.
Major thrust of the Amendment Act is decriminalisation of the Companies Act, 2013 and lightening rigour of penalties. Besides relaxation of CSR law, remuneration to non-executive directors in case of inadequate profits, producer companies, periodic financial results by non-listed companies, etc. has been provided. Highlights of the amendments are: