Committee chaired by Injeti Srinivas – for reviewing penal provisions of Company act 2013 – submitted its report making several recommendations for improving Corporate Governance.
Key recommendations:
Restructure Corporate Offences to relieve Special Courts from adjudicating routine offences:
Institute a transparent online platform for E-adjudication and E-publication of orders.
Re-categorize 16 out of the 81 compoundable offences by shifting them from the jurisdiction of special courts to an in-house E-adjudication framework.
De-clogging the National Company Law Tribunal (NCLT) by through significant reduction in compounding cases before the Tribunal;
Re-introduction of declaration of commencement of business provision to better tackle the menace of ‘shell companies’;
Imposition of a cap on independent director’s remuneration in terms of percentage of income in order to prevent any material pecuniary relationship;
Non-maintenance of registered office to trigger de-registration process;
Holding of directorships beyond permissible limits to trigger disqualification of such directors;
Greater disclosures with respect to public deposits to prevent abuse and harming of public interest.
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