Govt to set up panel on Companies Act next week

The govt may go in for another round of amendments depending on suggestions received from the committee

After just making a slew of amendments to the 'complicated' Companies Act, the government will constitute an expert committee next week to suggest further changes to make it easier to do business.

"There were about 50 odd provisions (in the Companies Act, 2013) which were very hurting... I will be constituting a committee... may be in the course of next week," said Finance Minister Arun Jaitley.

He said the government might go in for "another round" of amendments depending on the suggestions received from the committee, which will interact with stakeholders on further easing of rules.

The Companies Act, 2013 has more than 450 clauses and several of them had complicated doing of business, he said, adding "you are feeling the pinch after its being implemented."

The government earlier this week effected 16 amendments in the Companies Act with a view to remove some of the provisions with regard to denial of bail for violations of those provisions.

He said that there was one provision in this Act, which had similar conditions for bail in a corporate crime as in the now-defunct Prevention of Terrorism Act (Pota).

Under Pota, bail was virtually impossible unless the public prosecutor concedes that there is no case or the judge comes to the conclusion that there is no case made, he said.