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The Tax Publishers Companies Act, 2013--Amendment Act, 2020 An Insight into the Companies (Amendment) Act, 2020 Pragya Bhandari With the dual objects of ease of doing business and decriminalisation of criminal offences for corporates, the Companies (Amendment) Act, 2020 has been enacted to amend the Companies Act, 2013. The learned author in this write-updelineates the striking features of the Companies (Amendment) Act, 2020. 1. Prologue The much-awaited Companies (Amendment) Bill, 2020 has received the Presidential assent on 28-9-2020 and become the Companies (Amendment) Act, 2020 (hereinafter referred to as the Amendment Act). It was passed by the Lok Sabha on 19-9-2020 and by the Rajya Sabha on 21-9-2020. However, the provisions are yet to come into force and will be notified by the Ministry of Corporate Affairs (MCA). The Amendment Act brings significant amendments to the provisions of the Companies Act, 2013. 2. Section 2(52): Insertion to definition of listed companies Now, by virtue of inserting a proviso to section 2(52), the Amendment Act empowers the Central Government to exclude a certain class of companies, based on the listing of certain securities on recognised stock exchanges, as may be provided by rules, from the definition of listed company in consultation with SEBI. Section 2(52) defines the term listed company to mean a company which has any of its securities listed on any recognized stock exchange. 3. Section 16: Rectification of change of name The time limit of compliance of direction given by the Central Government for changing the name of the company has been reduced from six months to three months under section 16. Moreover, the Central Government has been empowered to allot a new name to the company, in case of default in complying with its direction instead of imposing punishment for non-compliance for such default. However, the company is not prevented from subsequently changing its name. 4. Section 23: Public offer and private placement In pursuant to amended provisions, a class of public companies will be allowed to list certain class of securities on stock exchanges in permissible foreign jurisdictions or such other jurisdictions, as may be prescribed by rules. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Companies Act, 2013--Amendment Act, 2020

An Insight into the Companies (Amendment) Act, 2020

Pragya Bhandari

With the dual objects of ease of doing business and decriminalisation of criminal offences for corporates, the Companies (Amendment) Act, 2020 has been enacted to amend the Companies Act, 2013. The learned author in this write-updelineates the striking features of the Companies (Amendment) Act, 2020.

1. Prologue

The much-awaited Companies (Amendment) Bill, 2020 has received the Presidential assent on 28-9-2020 and become the Companies (Amendment) Act, 2020 (hereinafter referred to as the Amendment Act). It was passed by the Lok Sabha on 19-9-2020 and by the Rajya Sabha on 21-9-2020. However, the provisions are yet to come into force and will be notified by the Ministry of Corporate Affairs (MCA). The Amendment Act brings significant amendments to the provisions of the Companies Act, 2013.

2. Section 2(52): Insertion to definition of listed companies

Now, by virtue of inserting a proviso to section 2(52), the Amendment Act empowers the Central Government to exclude a certain class of companies, based on the listing of certain securities on recognised stock exchanges, as may be provided by rules, from the definition of listed company in consultation with SEBI. Section 2(52) defines the term listed company to mean a company which has any of its securities listed on any recognized stock exchange.

3. Section 16: Rectification of change of name

The time limit of compliance of direction given by the Central Government for changing the name of the company has been reduced from six months to three months under section 16.

Moreover, the Central Government has been empowered to allot a new name to the company, in case of default in complying with its direction instead of imposing punishment for non-compliance for such default. However, the company is not prevented from subsequently changing its name.

4. Section 23: Public offer and private placement

In pursuant to amended provisions, a class of public companies will be allowed to list certain class of securities on stock exchanges in permissible foreign jurisdictions or such other jurisdictions, as may be prescribed by rules.