Government Proposes Key Amendments to Companies Act

The government has introduced significant amendments to the Companies Act, aimed at reducing the deadlines for appointing managing directors and directors to company boards, as well as shortening the timeframe for holding extraordinary general meetings.

Under the current law, the Registrar of Companies has 30 days to order the appointment of managing directors and directors in both public and private companies after a vacancy arises. However, the proposed amendment reduces this period to 10 days.

Additionally, the amendment seeks to shorten the notice period for holding general meetings. Currently, companies must provide 21 days' notice for such meetings after a request is made. The new amendment reduces this notice period to three days.

Similarly, for special general meetings, the existing requirement is a 14-day notice period. The proposed amendment would reduce this to seven days.