Proposed amendment to Related Party Transaction under Companies Act, 2013
1. With an objective of addressing and resolving the ‘shoe-pinching’ issues in Companies Act, 2013 (‘the Act’), the Government on 4th June, 2015, constituted 8 members’ Company Law Committee. The said Committee was headed by Secretary, Ministry of Corporate Affairs. On 1st February, 2016, Committee submitted 138-pages detailed Report and suggested 100 plus amendments to the Act. Based on the Company Law Committee Report, Government prepared the Companies (Amendment) Bill, 2016 (‘Amendment Bill’) and presented the same in Lok Sabha on 16th March, 2016. The Bill has suggested 87 amendments to the Companies Act, 2013. Such suggestion was in addition to the already issued clarifications, circulars, notifications, amendment in Company Rules, removal of difficulty orders and the Companies Amendment Act, 2015.