SME Times News Bureau | 16 Jul, 2018
Ministry of Corporate Affairs (MCA) has constituted a 10 Member
Committee, headed by the Secretary of Ministry of Corporate Affairs, for
review of the penal provisions in the Companies Act, 2013 may be setup
to examine de-criminalisation of certain offences.
MCA seeks to review offences under the Companies Act, 2013 as some of
the offences may be required to be decriminalised and handled in an
in-house mechanism, where a penalty could be levied in instances of
This would also allow the trial courts to pay more attention on
offences of serious nature.Consequently, it has been decided that the
existing compoundable offences in the Companies Act - 2013 viz. offences
punishable with fine only or punishable with fine or imprisonment or
both may be examined, an official release said on Sunday.
A decision may be taken as to whether any of
such offences may be considered as civil wrongs or defaults' where a
penalty by an adjudicating officer may be imposed in the first place and
only consequent to further non-compliance of the order of such
authority will it be categorised as an offence triable by a special
court, it added.
is also required to be seen as to whether any non-compoundable offences
viz. offence punishable with imprisonment only, or punishable with
imprisonment and also with fineunder the Companies Act, 2013 may be made
compoundable. The Committee shall submit its report within thirty days to the Central Government for consideration of its recommendations.