October 24, 2025

New Delhi is buzzing as the Corporate Affairs Ministry gears up to bring big, bold changes to the Companies Act! These amendments are expected to arrive in the winter session of Parliament, likely around November-December, promising a smoother ride for businesses across India. The main theme? "Ease of doing business." Someone close to this development told ET, "The changes would be based on the theme of ease of doing business," hinting that companies might face fewer hurdles and less paperwork. So, what's cooking? For starters, companies could soon be asked to form risk management committees. This brand new idea is like giving firms a sharp-eyed watchdog, ready to spot and handle potential dangers before they strike. Interestingly, the current Companies Act does not require companies to have such panels. But wait, there’s more! The ministry is also thinking about toughening the audit system, helping to catch problems early and keep things transparent. Plus, rules around raising capital might get a friendlier makeover, making it easier for companies to get the funds they need to grow. Other hot topics under discussion include: - Revising rules on who can or can't be a director, making sure the best leaders take charge. - Streamlining how top managers resign, making the process smoother. - Strengthening the framework for mergers and amalgamations, so companies can team up better. On the tech front, companies might soon be able to talk to their members just by email or other electronic means, dropping old paperwork. Also, the need for affidavits could be replaced by simple self-declarations, saving time and resources. General meetings might go high-tech too, with options to attend physically, virtually, or both—your choice! Companies could also maintain important records on electronic platforms, ensuring everything is neat and easy to access. And here’s a relief: if a company was removed from official registers earlier, it might get easier to bring them back to life, as long as they meet certain conditions. All these sparkling ideas are still under discussion and will be finalized after thorough talks. But one thing is clear—the Corporate Affairs Ministry is on a mission to make doing business in India easier, safer, and smarter. Stay tuned for these game-changing updates in the upcoming Parliament session!

Read More at Economictimes →

Tags: Companies act, Corporate affairs ministry, Risk management committees, Audit framework, Capital raising, Company law amendments,