Government panel seeks clarity in Companies Bill's exemption clauses

The standing committee on finance (SCF), which thoroughly examined the Companies Bill, 2009, has recommended a redrafting of the exemption clauses applicable to small companies in order to make them clear and more precise.

The SCF is of the view that the Companies Bill, 2009 is not very precise and explicit on the exemption regime as applicable to different forms of companies like small companies, one person companies (OPCs) and private companies.

The SCF has, therefore, suggested that the ministry of corporate affairs should examine this aspect so that the classification of companies and the exemption / concession regime to be made applicable for each of these forms of companies is clearly spelt out in the relevant provisions/clauses itself.

The statute should clearly define the provisions that are applicable to these companies and in what way these forms are distinguishable from each other and the regular public limited company, the SCF said.

In its twenty-first report presented to the Parliament recently, the SCF has suggested that the provisions of the bill should be synchronised with the Limited Liability Partnership Act (LLP) and modified, if required, based on its implications.