What does the Companies Amendment Bill 2026 propose?
The Corporate Laws (Amendment) Bill, 2026 proposes changes to the Companies Act and the LLP Act. It was introduced in the Lok Sabha on 23 March 2026, and a Joint Committee reported on 3 August 2026. It is not the law in force. Filings still follow the Act as it stands.
Is the Bill in force?
No. Parliament has to pass it, the President has to assent, and the government has to notify the provisions. The Joint Committee’s report recommends changes. It does not commence them. What the Bill proposes for directors, including section 161, is on the directors and the Bill page. An appointment is still DIR-12 under the current section.
What does it propose for a small company?
It proposes to raise the ceiling in section 2(85), the most that may be prescribed, from ₹10 crore of paid-up capital and ₹100 crore of turnover to ₹20 crore and ₹200 crore. That ceiling is not the test a company uses today. The prescribed limits remain ₹4 crore and ₹40 crore, on the small company page.
What does it propose for meetings?
It proposes that a small company, a one person company, and a dormant company hold one board meeting in a calendar year, and that a company hold a physical annual general meeting at least once in three years, with other meetings allowed by video. Neither change is in force. The board calendar in force is on the board meetings page. The annual general meeting in force is on the AGM page.
Which other proposals are still proposals?
- Two buy-backs in a financial year, with six months between them. A buy-back today follows the buy-back page.
- A longer period to register a charge, for a class of companies. The present period is unchanged.
- A higher net-profit line for corporate social responsibility, and a longer time to transfer an unspent amount. The present line is unchanged.
- A power to exempt a prescribed class from appointing an auditor. Every company is still audited, on the auditor page.
Frequently asked questions
Four questions cover the small-company ceiling, the audit, board meetings, and the committee report.
Did the Bill raise the small-company limits to ₹20 crore and ₹200 crore?
No. Those figures are a proposed ceiling. The limits in force are ₹4 crore of paid-up capital and ₹40 crore of turnover.
Can a class of companies skip the statutory audit yet?
No. The Bill proposes a power to exempt a class. Every company is still audited.
Is one board meeting a year enough for a small company?
No. A small company still holds one meeting in each half of the calendar year, with at least 90 days between them.
Did the Joint Committee’s report bring the Bill into force?
No. The report of 3 August 2026 recommends changes. Both Houses still have to pass the Bill, and the provisions have to be notified.
Sources
The Bill is the Corporate Laws (Amendment) Bill, 2026. The Act in force is unchanged by it.