Streamlining Corporate Governance: India Proposes Major Amendments

The Indian government introduces the Corporate Laws (Amendment) Bill, 2026, proposing crucial changes to company and LLP laws, including decriminalizing procedural defaults, amending CSR norms, and facilitating ease of doing business. These amendments aim to strengthen corporate governance and align with global best practices.

The Indian government on Monday introduced significant proposals to amend company and LLP laws aimed at enhancing ease of doing business and decriminalizing procedural defaults.

Finance Minister Nirmala Sitharaman introduced the Corporate Laws (Amendment) Bill, 2026, to amend the Limited Liability Partnership Act, 2008, and the Companies Act, 2016. These amendments include changes in CSR norms, a relaxation for small firms, and allowing companies to hold Annual General Meetings in a hybrid mode.

Key initiatives proposed are the establishment of special NCLT benches, flexibility in share buybacks, and the constitution of multi-disciplinary partnership firms. The bill also raises thresholds for CSR and aims to align India's corporate framework with global standards.

(With inputs from agencies.)