Criminal offences in Companies Act to be slashed\, govt mulls 65 changes

Criminal offences in Companies Act to be slashed, govt mulls 65 changes

The offences punishable with imprisonment, a fine, or both are compoundable, and offences punishable with imprisonment and a fine are non-compoundable

Ruchika Chitravanshi 

In a move to relax punishment for fraud under the Companies Act, the corporate affairs ministry is planning to withdraw the criminalisation aspect in 65 sections where the offences are compoundable or not serious in nature, a government official in the know said. “Criminalisation has had no worthwhile outcome. We will look at decriminalising most of the compoundable offences.

Conviction can lead to many far-reaching consequences, which is not the intention of the law,” a senior government official said. The offences punishable with imprisonment, a fine, or both are ...

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First Published: Mon, August 19 2019. 00:39 IST