2019 – Posted in: Daily News – Tags: Companies Act 2013, Limited Liability Partnership (LLP) Act 2008, National Company Law Tribunal

Government constitutes Company Law Committee

For: Mains

Topics covered:

About the committee – its mandates, Terms of reference
Companies Act, 2013
Limited Liability Partnership (LLP) Act, 2008

News Flash

The government has constituted the company law committee for examining and making recommendations on various provisions and issues related to implementation of the Companies Act, 2013 and Limited Liability Partnership (LLP) Act, 2008.

Committee will help in promoting the:

Ease of living by providing ease of doing business to corporates
Fostering improved corporate compliance for stakeholders
To address emerging issues impacting working of corporates

Terms of Reference

Suggesting measures to declog and improve functioning of the National Company Law Tribunal (NCLT)
Recommend measures to remove bottlenecks in the overall functioning of statutory bodies such as SFIO, IEPFA, NFRA, etc.
The panel will also analyse the nature of the offences (compoundable and non-compoundable) and offer recommendations on whether the offences can be re-categorised as ‘civil wrongs’ along with measures to optimise the compliance requirements under the Companies Act, 2013.
It will identify specific provisions under the Companies Act, 2013 and the LLP Act, 2008 which are required to be amended to bring about greater ease of living for corporate stakeholders including but not restricted to review of Forms under the two Acts.

Companies Act, 2013

The act is an Act of the Parliament of India on Indian company law.
It regulates incorporation of a company, responsibilities of a company, directors and dissolution of a company.
The 2013 Act is divided into 29 chapters containing 470 sections as against 658 Sections in the Companies Act, 1956 and has 7 schedules.

Limited Liability Partnership (LLP) Act, 2008

It was enacted by the Parliament of India to introduce and legally sanction the concept of LLP in India.
LLP is a legal entity partnership act.
LLP is a corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner.

National Company Law Tribunal

It is quasi-judicial body that adjudicates issues relating to Indian companies.
It was established under the Companies Act 2013 and was constituted on 1 June 2016, on the recommendation of the Justice Eradi committee on law relating to insolvency and winding up of companies.
The National Company Law Tribunal is the adjudicating authority for insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016.
No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Tribunal is empowered to determine.

Source: Indian Express