Finance Minister Nirmala Sitharaman on May 17 announced the decriminalisation of defaults under the Companies Act. Under this, seven compoundable offences have been altogether dropped, while another five will be dealt with under an alternative framework.
“Violations involving minor technical and procedural defaults – such as shortcomings in corporate social responsibility (CSR) reporting, inadequacies in board report, filing defaults, and delay in holding of annual general meetings (AGMs) will be decriminalised,” Sitharaman said.
Further, majority of the compoundable offences sections will be shifted to internal adjudication mechanism (IAM) and powers of regional directors for compounding has been enhanced, the finance minister added. As per this, 58 sections will be dealt with under IAM as compared to 18 earlier.
“This makes it simpler rather than going to courts and the amendments will de-clog the criminal courts and National Company Law Tribunal (NCLT). An ordinance will be brought in for this. And we will take it to Parliament once the session starts,” she added.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
Finance Minister Sitharaman on May 17 announced the fifth tranche and final tranche of the Rs 20 lakh crore financial package announced by Prime Minister Narendra Modi on May 12. The fifth tranche focuses on seven steps:- Health & education