Finance Minister Nirmala Sitharaman on Friday said she was confident that Parliament would pass the 72 amendments to the companies law, which includes decriminalisation of various provisions, a move which aims to protect corporates in case of genuine commercial failure.
Earlier this week, the Union cabinet headed by the Prime Minister Narendra Modi, approved the changes made to the companies law. With this, the government aims to further improvement the companies law and to motivate industries to invest boldly to boost economic growth.
“I am sure Parliament in its wisdom will pass it…,” the minister said at the inaugural session of colloquium on ‘Judicial Sensitisation on Insolvency Law and Associated Best Practices’ organised by National Company Law Appellate Tribunal (NCLAT).
Sitharaman, who is also the Corporate Affairs Minister, further said it is the commitment of the government that wealth creators – small, medium, big or large – will be treated with respect.
“…there shall be trust of the government in these entrepreneurs,” she added.
The amendments in the Companies Act, 2013, also aims at reduction in penalties for certain offences as well as in timeline for rights issues, relaxation in corporate social responsibility (CSR) compliance requirements and creation of separate benches at the NCLAT.
Sitharaman further said India made a big difference to itself by passing the Insolvency and Bankruptcy Code (IBC) three years ago.
(With input from agencies)