Most Provisions Of Companies (Amendment) Act, 2020, Come Into Force

Most of the provisions of Companies (Amendment) Act, 2020 has come into force with effect from 21st December 2020.

The Ministry of Corporate Affairs has issued notification in the Official Gazette in this regard on Tuesday (22nd December).

The amendment was passed by the Parliament on September 22, 2020 to decriminalize minor procedural or technical lapses under the Companies Act, 2013, into civil wrong.

The amendment included (1) Decriminalization of offences in case of defaults which can be determined objectively and which otherwise lack any element of fraud or do not involve larger public interest; (2) Empowerment of Central Government to de-list certain class of companies, in consultation with SEBI, primarily for listing of debt securities; (3) Incorporation of a new Chapter XXIA in the 2013 Act to govern Producer Companies (earlier governed by the 1956 Act; (4) Setting up of new NCLAT Benches.

The following provisions of the Amendment Act has come into force as of now:

1. Section 1;

2. Section 3;

3. Sections 6 to 10 (both inclusive);

4. Sections 12 to 17 (both inclusive);

5. Clauses (a) and (b) of section 18;

6. Sections 19 to 21 (both inclusive);

7. Clause (i) of section 22;

8. Section 24;

9. Section 26;

10. Sections 28 to 31 (both inclusive);

11. Sections 33 to 39 (both inclusive);

12. Sections 41 to 44 (both inclusive);

13. Sections 46 to 51 (both inclusive);

14. Section 54;

15. Section 57;

16. Section 61; and

17. Section 63. 

Click here to Read/Download Notification

Read Notification