Amendments in Companies Act - IBC time span hiked to 270 days; Unspent money to be transferred to National CSR Fund
Published: Jul 18, 2019
By TIOLCORPLAWS News Service
NEW DELHI, JULY 18, 2019: THE Union Cabinet yesterday gave its nod for several amendments in the Companies Act. The Amendment Bill lays emphasis on issues like declogging of NCLT, speedy disposal of IBC cases; creation of escrow account by companies for CSR and transfer of unspent funds to Natonal CSR Fund.
The amendment is for time-bound dispoal of IBC cases and also enhances the time-period from 270 days to 330 days which also includes the time for litigation. The Amendment also grants legislative primacy to financial creditors over operational creditors and greater benefits to consenting parties in voting by the Committee of Creditors.
The proposed amendment mandates companies to transfer mandatory CSR funds to an escrow account and transfer the unutilised funds to the National Fund. Such a transfer would become due if it is not spent within a time span of three years.