Monday, 1 January 2018

Key Amendments in Corporate laws

Companies Act, 2013

The Parliament passes yet another amendment to the Companies Act, 2013 titled ‘Companies (Amendment) Bill, 2017’. The bill although passed by Parliament on December 19, 2017, is still pending official notification in the official gazette.  

Insolvency and Bankruptcy Code

The lower house of the Parliament, Lok Sabha, has passed an important amendment to the new law on Insolvency and Bankruptcy. The bill is titled ‘The Insolvency and Bankruptcy Code (Amendment) Bill, 2017’ which is still required to be passed by the upper house and officially notified in the official gazette. The Bill prohibits certain persons from submitting a resolution plan in case of defaults. These include: (i) wilful defaulters, (ii) promoters or management of the company if it has an outstanding non-performing debt for over a year, and (iii) disqualified directors, among others. Further, it bars the sale of property of a defaulter to such persons during liquidation.

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