Union Minister Nirmala Sitharaman speaks in the Lok Sabha during the second part of the Budget Session of Parliament, on March 23, 2026.
| Photo Credit: ANI
The Lok Sabha on Monday (March 23, 2026) referred the Corporate Laws (Amendment) Bill, 2026, to a joint parliamentary committee comprising members from both Houses of Parliament for a detailed analysis and recommendations.
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The decision was taken following a voice vote after Finance Minister Nirmala Sitharaman suggested it.
Earlier, after the Bill was introduced in Lok Sabha, Opposition members Manish Tewari (Congress), Saugata Roy (Trinamool Congress) and Thamizhachi Thangapandian (DMK) strongly opposed it, alleging that the legislation sought to dilute the provisions of law under which companies mandatorily have to pay 2% of their profits towards corporate social responsibility (CSR).
The Finance Minister strongly refuted the allegations and said that the Bill has been introduced after two years of deliberations.
She said the apprehensions of the members were unfounded as the Bill seeks to amend only the criteria of net profits, not the entire clause related to CSR.
Ms. Sitharaman then suggested to Speaker Om Birla that the Bill be sent to a Joint Parliamentary Committee (JPC) for extensive deliberations and proper suggestions.
At this, Mr. Tewari said that since a Parliamentary Standing Committee on Corporate Affairs is already in place, the Bill should be sent to that panel rather than constituting a new JPC.
Intervening the Congress MP, Home Minister Amit Shah said that none of the Opposition members talked about referring the legislation to a parliamentary committee, and now, when the Finance Minister herself has sought it, they were arguing as to which panel the Bill should be sent.
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Speaker Birla then put the proposal of the Finance Minister to a vote, and it was approved with a voice vote by the House, sending the Bill to a JPC for which the members will be selected later.
The Corporate Laws (Amendment) Bill, 2026, aims to amend the Limited Liability Partnership (LLP) Act, 2008, and the Companies Act to facilitate ease of doing business and address the gaps identified by the Company Law Committee in its 2022 report.
The Union Cabinet had already okayed the proposed Bill, aimed at further easing the compliance burden on businesses and advancing the government’s agenda of decriminalising minor corporate offences.
The proposed amendments are expected to rationalise penalties, shift several minor procedural lapses from criminal liability to monetary penalties, and streamline regulatory processes to promote ease of doing business.
The reforms are also aimed at improving the overall corporate compliance framework while reducing litigation and encouraging a more facilitative regulatory environment for companies and LLPs.
Ms. Sitharaman also said the Bill is aimed at promoting further ease of doing business and ease of living for corporates by decriminalising more provisions and amending certain other provisions.
It is aimed at providing ease of compliance for ‘one person companies’, small companies, startups and producer companies, the Minister said in the Bill’s statement of objects and reasons.
According to Ms. Sitharaman, the amendments also seek to streamline the existing regulatory practices to strengthen as well as recognise new concepts in light of the rapidly evolving corporate landscape and changing business practices.
Published – March 23, 2026 03:39 pm IST
