Union Cabinet approves amendment to Limited Liability Partnership Act, 12 offences to be decriminalised

On Wednesday, the Union Cabinet passed the Limited Liability Partnership (LLP) Amendment Bill, which proposes to decriminalise 12 offences under the Limited Liability Partnership Act and foster the ease of doing business in the country.

Addressing a press briefing after the Cabinet meeting, the Union Finance Minister Nirmala Sitharaman said, "An amendment has been proposed in the Limited Liability Partnership Bill for the first time. We are doing a lot of changes in the Companies Act and corporate bodies are getting a lot of ease of doing business. LLPs are becoming popular among start-ups."

"As of today, you have 24 penal provisions in the LLP Act, 21 compoundable offences, and 3 non-compoundable offences. After today penal provisions will be cut to 22, compoundable offences will be only 7, non-compoundable offenses will be only 3," the Finance Minister said.

"Total of 12 offences to be decriminalised under LLPs. Many of the startups can also benefit from the ease of doing business," she added.

"To provide ease of doing business benefits to law-abiding corporators in LLP firms, the criminality has been removed. A penalty in the form of a fine has been decided for violations of general trends. This boosts Aatmanirbhar Bharat," Union Minister Anurag Thakur said.

Meanwhile, the Union Cabinet has also given nod to the Deposit Insurance Credit Guarantee Corporation (DICGC) Bill, 2021. Addressing media persons, FM Nirmala Sitharaman said, "The proposed law will insure bank deposits up to Rs 5 lakh. Under DICGC Bill 2021, 98.3 percent of all deposits will get covered and in terms of deposit value, 50.9 percent deposit value will be covered. Global deposit value is only 80 percent of all deposit accounts. It only covers 20-30 percent of the deposit value."

Source : DNA India