The Lok Sabha has passed the Companies Amendment Bill,2019 on 25 July,2019. While the Amendment Bill has 44 sections in all, 32 sections of the same are already in force with effect from 2 November,2018, by way of an Ordinance promulgated earlier. The Bill introduces 12 additional amendments , primarily, with an objective to enhance the corporate governance standards, even in private sector companies . The Bill after receiving the Rajya Sabha’s approval and the assent of the President of India, will come into force on such dates as may be notified.
Key changes introduced are dematerialization of securities of unlisted companies, transfer of unspent CSR amount to a fund consitituted under Sch. VII of the Act, powers to the NCLT to declare directors/officers as not fit and proper to hold such positions and the like.