Corporate Laws (Amendment) Bill 2026: Key Changes
Why in the news
India brought in the Corporate Laws (Amendment) Bill, 2026 to modernise corporate governance and ease business. It is tied to strengthening the Insolvency and Bankruptcy Code and has gone to a Joint Parliamentary Committee.
Key proposed amendments
| Area | Proposed change |
|---|---|
| NCLT | Special benches for faster disposal of cases and less backlog |
| Mergers | One NCLT bench to handle merger approvals |
| CSR | Applicability threshold raised to ₹10 crore net profit (from ₹5 crore) |
| Audit | No non-audit services by auditors during tenure and for three years after |
| Buybacks | Up to two share buybacks a year |
| NFRA | Empowered to make regulations |
| AIFs | Trust-based Alternative Investment Funds can convert into LLPs |
| AGMs | Virtual AGMs through video conferencing |
Concepts in the bill
- NCLT: quasi-judicial body for corporate disputes and insolvency under the Companies Act and IBC; capacity constraints cause delays
- Insolvency resolution: time-bound process to resolve stressed assets under the IBC, aimed at maximising value and reviving firms
- CSR: mandatory spending by companies on social and developmental work
- NFRA: regulates auditing and accounting standards and oversees auditors
Significance
- Smaller firms get relief from CSR compliance
- Auditor independence is protected
- Capital management and meeting participation become easier
Exam angle
- Review body: Joint Parliamentary Committee.
- Numbers: ₹10 crore CSR threshold; two buybacks per year; three-year audit cooling period.
- Know the full forms: NCLT, NFRA, AIF, LLP.