The Union Cabinet on Wednesday cleared the Companies (Second Amendment) Bill, 2019 to amend the Companies Act, 2013.
The Bill will remove criminality under the 2013 Act in case of defaults which can be determined objectively and which otherwise lack the element of fraud or do not involve larger public interest.
"This will also lead to further de-clogging of the criminal justice system in the country," Union Ministers Prakash Javadekar and Nirmala Sitharaman told reporters after the Cabinet meeting.
"Moreover, the Bill will also further ease of living for law-abiding corporates," they added.
Earlier, the Companies (Amendment) Act, 2015 amended certain provisions of the Act to remove difficulties faced in the implementation of various provisions of the Act.
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