CL&CGC ICAI: Highlights of the amendments made by the Companies (Amendment) Act, 2020

Last updated: 30 September 2020

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The Companies (Amendment) Act, 2020, which received Presidential assent on 28th September 2020, introduces substantial changes by amending 61 sections and adding 4 new ones. A primary focus of this amendment is the decriminalisation of the Companies Act, 2013, aiming to reduce penalties and remove imprisonment for various offences. Key highlights include relaxations in CSR law, provisions for director remuneration during inadequate profits, introduction of rules for producer companies, and requirements for periodic financial results from unlisted companies.

Amendments have been made in 61 sections of the Companies (Amendment) Act, 2020 together with an addition of 4 new sections. ICAI has announced the highlights of the amendments. Read the official announcement below: ANNOUNCEMENT Sub: Highlights of the amendments made by the Companies (Amendment) Act, 2020 by CLCGC ICAI. The Companies (Amendment) Act, 2020 (herein after referred to as the Amendment Act) got the assent of Honble President as on 28th September, 2020 and is thus operative s

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FAQ :

The main objective of the Companies (Amendment) Act, 2020, is the decriminalisation of the Companies Act, 2013, which involves reducing penalties and removing imprisonment for various offences.

The Companies (Amendment) Act, 2020, includes amendments in 61 sections and the addition of 4 new sections.

Yes, companies with a CSR liability of up to Rs 50 lakh a year are now exempt from setting up CSR Committees. Additionally, excess CSR spending can be set off against future obligations.

The Act incorporates a new Chapter XXIA relating to Producer Companies, bringing back provisions that were previously part of the Companies Act, 1956.

The maximum liability for auditors has been reduced. For listed companies, the penalty is now Rs 5 lakh (down from Rs 25 lakh), and for other companies, it's Rs 1 lakh (down from Rs 25 lakh).

Yes, a new section (129A) has been introduced empowering the Central Government to require specified classes of unlisted companies to prepare and file periodical financial results.

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CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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