This article discusses the key proposed amendments under the Corporate Laws (Amendment) Bill, 2026, which seeks to modernise the Companies Act, 2013 and the Limited Liability Partnership Act, 2008. Here's what you need to know:
‣ Flexible Meeting Modes – Companies may now hold AGMs and EGMs in physical, virtual, or hybrid mode, with a shorter 7-day notice permitted for wholly virtual EGMs, promoting wider shareholder participation.
‣ Expanded Small Company Thresholds – Paid-up share capital limit raised to Rs. 20 crore and turnover to Rs. 200 crore, widening the pool of companies eligible for reduced compliance requirements.
‣ Cost Audit Reforms – Cost Accounting Standards to receive statutory backing, with KMPs directly accountable for cost audit compliance and structured penalties for defaults.
‣ Revised CSR Applicability – The net profit threshold for CSR compliance doubled from Rs. 5 crore to Rs. 10 crore, relieving smaller profitable companies from mandatory CSR committee obligations.
