New Delhi July 15 (IANS) A 10-member committee has been set up to review the penal provisions under the Companies Act and examine de-criminalisation of certain offences the government announced on Sunday.
A Corporate Affairs Ministry release said the committee chaired by Corporate Affairs Secretary Injeti Srinivas would submit its report in 30 days to the government.
The Corporate Affairs Ministry seeks to review offences under the Companies Act 2013 as some of the offences may be required to be decriminalised and handled in an in-house mechanism where a penalty could be levied in instances of default it said.
"This would also allow the trial courts to pay more attention on offences of serious nature.
"Consequently it has been decided that the existing compoundable offences punishable with fine only or punishable with fine or imprisonment or both may be examined and a decision may be taken as to whether any of such offences may be considered as ‘civil wrongs or ‘defaults where a penalty by an adjudicating officer may be imposed in the first place and only consequent to further non-compliance of the order will it be categorised as an offence triable by a special court " it added.
Well-known banker Uday Kotak former Lok Sabha Secretary General T.K. Vishwanathan law firm Shardul Amarchand Mangaldas Executive Chairman Shardul S. Shroff and AZB & Partners Founder Managing Partner Ajay Bahl are among the members of the panel.
According to the ministry the committee would examine the nature of all acts and recommend if any of such acts may be re-categorised as acts which attract civil liabilities wherein the company and its officers in default are liable for penalty.
The committee would seek to put in place the broad contours of an in-house adjudicatory mechanism where penalty may be levied in a system driven manner so that discretion is minimised the statement said.

--IANS bc/vd