Lok Sabha Sends Corporate Laws (Amendment) Bill, 2026 to JPC
Source: News on Air
Context:
The Lok Sabha has referred the Corporate Laws (Amendment) Bill, 2026 to a Joint Parliamentary Committee (JPC) for detailed examination. The move was proposed by Union Finance Minister Nirmala Sitharaman and adopted through a voice vote.
About the Bill
Objective
- Amend:
- Companies Act, 2013
- Limited Liability Partnership Act, 2008
Purpose:
- Improve ease of doing business
- Address gaps identified by the Company Law Committee (2022 report)
- Promote ease of living for corporates
Key Proposed Changes
1. Decriminalisation of Offences
- Shift minor procedural violations:
- From criminal liability → monetary penalties
Impact:
- Reduces compliance burden
- Encourages business-friendly regulatory environment
2. Rationalisation of Penalties
- Simplifies penalty structure
- Makes enforcement more proportionate and predictable
3. Streamlining Regulatory Processes
- Reduces procedural complexity
- Enhances efficiency in corporate governance
4. CSR-Related Clarification
- Amendment relates to calculation of net profit
- Does not dilute the mandatory 2% CSR provision
What is a Joint Parliamentary Committee (JPC)?
- A committee comprising:
- Members from Lok Sabha and Rajya Sabha
- Function:
- Detailed scrutiny of Bills
- Stakeholder consultations
- Recommendations to Parliament