A relook at the overly harsh provisions of the Companies Act must yield action

Highlights

• The Centre has announced the constitution of a committee to revisit several provisions of the Companies Act, 2013 that impose stiff penalties and, in some cases, prison terms as well, for directors and key management personnel.
• A trust deficit between industry and government owing to stray incidents of corporate malfeasance should not inhibit normal business operations
•  A rethink perhaps triggered by the fact that private sector investment is yet to pick up steam and capital still seeks foreign shores to avoid regulatory risks.

Source: The Hindu