The government on Thursday decided to allow the registrar of companies (RoC) to impose penalties up to Rs 25 lakh for several violations of the Companies Act and removed the need to go to court or the National Company Law Tribunal (NCLT) for minor offences.
Sources said several amendments to rules related to independent directors, including their remuneration, were part of the amendments cleared by the Union Cabinet that has proposed promulgation of an Ordinance. The move to tweak penalties is aimed at unclogging courts saddled with minor violations.
In August, a government-appointed panel suggested various changes to the Act, including restructuring of corporate offences under the companies law and an in-house adjudication mechanism to ensure that courts get more time to deal with serious violations. Read more