The Centre has promulgated the Companies Amendment Ordinance, 2018 to promote Ease of Doing Business with better corporate compliance.
President Ram Nath Kovind gave his assent to the recommendation of the Union Cabinet for promulgation of the Ordinance.
- Shifting of the jurisdiction of 16 types of corporate offences from the special courts to in-house adjudication, which is expected to reduce the case load of Special Courts by over 60%, thereby enabling them to concentrate on serious corporate offences.
- The penalty has been reduced to half for small companies and one person companies of that applicable to normal companies.
- Instituting a transparent and technology driven in-house adjudication mechanism on an online platform and publication of the orders on the website.
- Strengthening in-house adjudication mechanism by necessitating a concomitant order for making good the default at the time of levying penalty, to achieve the ultimate aim of achieving better compliance.
- Declogging the NCLT by enlarging the pecuniary jurisdiction of Regional Director, vesting in the Central Government the power to approve the alteration in the financial year of a company and vesting the Central Government the power to approve cases of conversion of public companies into private companies.