The Companies (Amendment) Act, 2020

Companies Amendment Act 2020 is passed with Decriminalization of various offences of non-severe nature defined in the Companies Act, 2013 and reducing penalties. This is done by Doing away with imprisonment for various offences, Substitution of Imprisonment with monetary penalty and Reduction of penalty amounts, A new Chapter XXIA has been added in the Act with regard to the Producer Companies from section 378A to Section 378ZU which will ensure entry of Corporate in the farming Sector. Small Companies, Start-ups and Producer Companies would be subject to less penalty for prescribed contraventions. Other features include Direct listing in foreign jurisdictions, Exemptions from filing resolutions, Corporate Social Responsibility ("CSR") spending, Exclusion from listed companies, Beneficial Shareholding, Preparation of periodical financial results etc.

 

 

No 29 of 2020 28th September, 2020

An Act further to amend the Companies Act, 2013.

 

Section 1, 2, 8, 16, 23 and 26 of Companies Amendment Act 2020

Section 1: Short title and commencement

Amendment of section 2, 8, 16, 23 and 26 of Companies Act 2013

 

Section 40, 48, 56, 59, 62, 64 of Companies Amendment Act 2020

Amendment of Section 40, 48, 56, 59, 62 and 64 of Companies act 2013

 

Section 66, 68, 71, 86, 88, 89, 90 of Companies Amendment Act 2020

Amendment of Section 66, 68, 71, 86, 88, 89 and 90 of Companies Act 2013

 

Section 92, 105, 117, 124, 128, 129a, 134 Companies Amendment Act 2020

Amendment of Section 92, 105, 117, 124, 128 and 134 of Act 2013

Insertion of new Section 129A

Section 129A: Periodical financial results

 

Section 135, 137, 140, 143, 147, 149, 165 Companies Amendment Act 2020

Amendment to Section 135, 137, 140, 143, 147, 149, 165 of Act 2013

 

Section 167, 172, 178, 184, 187, 188, 197 Companies Amendment Act 2020

Amendment to Section 167, 172, 178, 184, 187, 188, 197 of Act 2013

 

Section 204, 232, 242, 243, 247, 284, 302 Companies Amendment Act 2020

Amendment to Section 204, 232, 242, 243, 247, 284, 302 of Act 2013

 

Section 342, 347, 348, 356, 378A, Chapter XXIA of Companies Amendment Act 2020

Amendment of Section 342, 347, 348, 356 of Companies Act 2013

 

 

 

Insertion of New Chapter XXIA Producer Companies

Part I Preliminary

Section 378A: Definitions

 

Part II Incorporation of Producer Companies and other Matters

Section 378B, 378C, 378D, 378E, 378F, 378G, 378H of Companies Amendment Act 2020

Section 378B: Objects of Producer Company

Section 378C: Formation of Producer Company and its Registration

Section 378D: Membership and Voting Rights of Members of Producer Company

Section 378E: Benefits of Members

Section 378F: Memorandum of Producer Company

Section 378G: Articles of Association

Section 378H: Amendment of Memorandum

 

Section 378I, 378J, 378K, 378L, 378M and 378N of Companies Amendment Act 2020

Section 378I: Amendment of Articles

Section 378J: Option to inter-State co-operative societies to become Producer Companies

Section 378K: Effect of Incorporation of Producer Company

Section 378L: Vesting of Undertaking in Producer Company

Section 378M: Concession, etc., to be deemed to have been granted to Producer Company

Section 378N: Provisions in respect of officers and other employees of inter-State co-operative society

 

Part III Management of Producer Company

Section 378O, 378P, 378Q, 378R, 378S, 378T of Companies Act 2020

Section 378O: Number of Directors

Section 378P: Appointment of Directors

Section 378Q: Vacation of Office by Directors

Section 378R: Powers and Functions of Board

Section 378S: Matters to be transacted at General Meeting

Section 378T: Liability of Directors

 

Section 378U, 378V, 378W, 378X, 378Y, 378Z of Companies Act 2020

Section 378U: Committee of Directors

Section 378V: Meeting of Board and Quorum

Section 378W: Chief Executive and his Functions

Section 378X: Secretary of Producer Company

Section 378Y: Quorum

Section 378Z: Voting Rights

 

 

 

Part IV General Meetings

Section 378ZA, 378ZB, 378ZC, 378ZD, 378ZE, 378ZF of Companies Amendment Act 2020

Section 378ZA: Annual General Meeting

 

Part V Share Capital and Members Rights

Section 378ZB: Share Capital

Section 378ZC: Special User Rights

Section 378ZD: Transferability of shares and attendant rights

 

Part VI Finance, Accounts and Audit

Section 378ZE: Books of Account

Section 378ZF: Internal Audit

 

Section 378ZG, 378ZH, 378ZI, 378ZJ, 378ZK, 378ZL of Companies Amendment Act 2020

Section 378ZG: Duties of auditor under this Chapter

Section 378ZH: Donation or subscription by Producer Company

Section 378ZI: General and Other Reserves

Section 378ZJ: Issue of Bonus Shares

Section 378ZK: Loan etc to Members

Section 378ZL: Investment in other companies, formation of subsidiaries, etc

 

Part VIII Penalties

Section 378ZM, 378ZN, 378ZO, 378ZP of Companies Act 2020

Section 378ZM: Penalty for Contravention

 

 

 

Part IX Amalgamation, Merger or Division

Section 378ZN: Amalgamation, merger or division, etc., to form new Producer Companies

 

Part X Resolution of Disputes

Section 378ZO: Disputes

Section 378ZP: Strike Off Name of Producer Company

 

Part XI Miscellaneous Provisions

Section 378ZQ, 378ZR, 378ZS, 378ZT, 378ZU of Companies Act 2020

Section 378ZQ: Provisions of this chapter to override other laws

Section 378ZR: Application of Provision relating to Private Companies

 

Part XII Re-conversion of Producer Company to Inter-state Cooperative Society

Section 378ZS: Re-conversion of Producer Company to inter-State co-operative society

Section 378ZT: Power to modify Act in its application to Producer Companies

Section 378ZU: Power to make Rules

 

Section 379, 392, 393A, 403, 405, 410 of Companies Amendment Act 2020

Amendment to Section 379

Amendment to Section 392

Insertion of New Section 393A Exemptions under this Chapter

Amendment of Section 403

Amendment of Section 405

Amendment of Section 410

 

 

 

Section 418A, 435, 441, 446B, 450, 452, 454, 465 of Companies Act 2020

Insertion of New Section 418A Benches of Appellate Tribunal

Amendment to Section 435

Amendment to Section 441

Substitution of New Section 446B Lesser penalties for certain companies

Amendment to Section 450

Amendment to Section 452

Amendment to Section 454

Amendment to Section 465

 

 

Companies Act 2013, 1956

Companies Amendment Act 2015

Companies Amendment Act 2017

Companies Amendment Act 2019