Which Committee recommended changes in company law?
The committee most commonly associated with recommending major changes in Indian company law is the:
J. J. Irani Committee (2005)
Chairperson: Dr. J. J. Irani
Purpose: To suggest reforms for a modern and simplified company law framework.
Key outcomes:
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Formed the basis for drafting the Companies Act, 2013.
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Recommended easier compliance, better corporate governance, and enhanced shareholder protection.
So, the correct answer is: J. J. Irani Committee (2005)
The primary committee that recommended changes in company law in India is the Company Law Committee (CLC), which was constituted by the Ministry of Corporate Affairs. The CLC submitted its report in 2019 and 2022, proposing over 100 amendments to the Companies Act, 2013, with the aim of improving corporate governance, easing compliance, and aligning Indian company law with global best practices.
Key Committees and Their Recommendations
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Company Law Committee (2019 & 2022):
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Recommended decriminalization of several penal provisions.
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Suggested amendments to facilitate electronic communication, virtual meetings, and fractional shares.
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Proposed changes to director tenure, resignation procedures, and mergers/amalgamations.
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Recommended the establishment of Risk Management Committees (RMCs) for certain companies.
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J.J. Irani Committee (2005):
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Was formed to comprehensively revise the Companies Act, 1956.
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Its recommendations formed the basis for the drafting of the Companies Act, 2013.
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| Committee Name | Year | Key Focus Areas |
|---|---|---|
| Company Law Committee | 2019, 2022 | Decriminalization, ease of compliance, digital governance, RMCs, virtual meetings |
| J.J. Irani Committee | 2005 | Comprehensive revision of Companies Act, 1956 |
