FM Nirmala Sitharaman unveils Corporate Laws (Amendment) Bill in Lok Sabha, proposes key reforms
The bill aims to amend the Limited Liability Partnership Act, 2008, and the Companies Act, 2013, to simplify corporate regulations, reduce compliance burdens, and decarbonize minor offenses
New Delhi (The Uttam Hindu) : Finance Minister Nirmala Sitharaman introduced the Corporate Laws (Amendment) Bill in the Lok Sabha on Monday. The bill aims to amend the Limited Liability Partnership (LLP) Act, 2008, and the Companies Act, 2013.
The Companies Act governs incorporation, corporate governance, disclosures, and dissolution, while the LLP Act provides a more flexible framework with limited liability for partners. The Finance Minister proposed to refer the Corporate Laws (Amendment) Bill, which was approved by the Lok Sabha, to a Joint Parliamentary Committee (JPC) of Parliament for further detailed examination.
Finance Minister Sitharaman stated that the Corporate Laws (Amendment) Bill, 2026, has been introduced after two years of intense deliberations. The recommendations and reports of the Company Law Committee (CLC) have been fully accepted. The CLC comprised representatives from industry chambers and professional bodies, as well as legal and accounting experts. She added that the report was also posted on the website for public comment, and the comments received were examined.
Earlier, before the bill was introduced, opposition MPs, including Congress MP Manish Tewari, TMC's Saugata Roy, and DMK's Dr. T. Sumathi, opposed it. They alleged that the proposed law weakens provisions for Corporate Social Responsibility (CPR). Responding to their concerns, Nirmala Sitharaman said that the proposed amendments would not only attract more investment but also facilitate corporate governance.
Additionally, the Union Cabinet approved amendments to the Insolvency and Bankruptcy Code on March 10, paving the way for the introduction of the IBC Amendment Bill in the current parliamentary session. The proposed legislative amendments are based on the recommendations of a special parliamentary committee headed by Bharatiya Janata Party MP Baijayant Panda. The committee was tasked with reviewing the existing bankruptcy framework. Upon completion of the review, the committee submitted its comprehensive report in December 2025, with a special emphasis on accelerating the corporate resolution process.