The Companies (Amendment) Bill, 2019

  • Allows companies to transfer their unspent CSR funds to a separate account and the same has to be spent within three financial years.
  • In case, the money remains unspent, then it should be transferred to any fund specified in Schedule VII of the Act.
  • Provides more teeth to the central government to deal with violators and reducing burden on special courts.
  • Seeks to enable the National Financial Reporting Authority (NFRA) to perform its functions through divisions and executive body.
  • Seeks to empower Registrar of Companies (RoC) to initiate action for removal of a company’s name if the latter is not carrying out business activities as per the Act.
  • Proposes to transfer some functions from NCLT to the Central government such as dealing with applications for change of financial year and conversion from public to private companies.
  • In order to curb the menace of shell companies, the Bill proposes making non-maintenance of registered office and non-reporting of commencement of business grounds for striking off the name of the company .

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