Why in News
The Lok Sabha introduced the Corporate Laws Amendment Bill 2026 and referred it to a Joint Parliamentary Committee (JPC) for detailed examination.
Key Objectives of the Bill
- Promote ease of doing business
- Improve ease of living for corporates
- Decriminalise minor offences
- Rationalise penalties
- Streamline regulatory procedures
Laws Proposed to be Amended
- Companies Act, 2013
- Limited Liability Partnership Act, 2008
Major Proposed Changes
- Shift minor procedural violations from criminal offences to monetary penalties
- Simplify compliance requirements
- Address gaps identified by Company Law Committee (2022)
CSR Controversy
- Opposition raised concerns about dilution of Corporate Social Responsibility (CSR) norms
- Current rule: Companies must spend 2% of net profits on CSR
- Government clarification:
- Only net profit calculation criteria being amended
- CSR requirement remains unchanged
Joint Parliamentary Committee (JPC)
- The Joint Parliamentary Committee (JPC) is not a constitutional body.
- It is an ad-hoc (temporary) body established by Parliament through a motion passed in both houses, or by the Speaker/Chairman of both houses, to examine specific bills or investigate urgent matters, not established directly by the Constitution.
| [2024] With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements: 1 CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities. 2 CSR rules do not specify minimum spending on CSR activities. Select the correct answer using the code given below: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 |
