Opportunity lost, but embrace what's in

The recommendations of a committee reviewing provisions of the Companies Act, 2013, present the low-hanging fruit for reform

A committee to review the provisions of the Companies Act, 2013, has stopped short of incisive reform crying to be effected to the “new” company law, which is already five years old. However, the recommendations actually made by committee present the low-hanging fruit for reform, and must be embraced immediately.

The single biggest contribution by the committee is to provide a detailed analysis of various types of offences under the law that are amenable to settlement by way of “compounding” — paying a monetary sum as a settlement to avoid prosecution. From these compoundable offences, recommendations to move these offences from