Current Affairs

Parliament cleared Companies (Amendment) Bill, 2019

Current context: Parliament has passed the Companies (Amendment) Bill, 2019 that will tighten corporate governance.
Parliament cleared Companies (Amendment) Bill, 2019
  • The norms under the bill are pertaining to strengthen enforcement provisions, CSR spending for corporates, and help unclog National Company Law Tribunal.
  • The legislation was passed by the Rajya Sabha on 30th July 2019 with a voice note and was already passed in Lok Sabha on 26th July.
  • The bill made key changes to the spending of Corporate Social Responsibility (CSR) as the companies are mandated to keep unspent money in a special account.
  • As per the Act, companies are required to shell out at least 2% of their 3-year annual average net profit towards CSR activities, if the earning profit of the company is over ₹ 5 crores, , networth is more than ₹ 500 crore or turnover is of ₹ 100 crores.
  • The Bill empowers to initiate action for removal of the name of the company from Register of companies to the Registrar of Companies (RoC) if any business or operation is not carried out in according with the company law.
  • It has the provision for shifting of powers for conversion from NCLT to the central government from the public to private companies, and more clarity about certain powers of the National Financial Reporting Authority (NFRA).

Question: 

Q.1 The Companies (Amendment) Bill, 2019 has made provisions for?
a. Corporate Bonds
b. Corporate Social Responsibility (CSR)
c. Companies shareholders
d. None of them
Parliament cleared Companies (Amendment) Bill, 2019 Parliament cleared Companies (Amendment) Bill, 2019 Reviewed by Neha on July 31, 2019 Rating: 5

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