Issuance of fractional shares, simplifying the norms for distressed companies and other suggestions by company law committee

The company law committee has made recommendations to enable the issuance of fractional shares, simplifying the norms for distressed companies to raise funds, recognizing special purpose acquisition companies, and allowing them to list on stock exchanges. The panel has also suggested the prohibition of converting co-operative societies into a company and substituting the need to furnish affidavits with the filing of self certification and declaration.

The Ministry of corporate affairs set up the company law committee (CLC). The committee focuses on introducing changes to foster ease of doing the business and ensuring the proper implementation of the companies act 2013 and the Limited Liability Partnership Act, 2008. Corporate affairs secretary Rajesh Verma chairs CLC.