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The Companies Act, 2013 (“Act”) prescribes comprehensive compliance requirements for organizations. It categorizes violations as civil or criminal, subject to penalties or fines and/or imprisonment. Prior to 2018, most violations under the Act were criminal in nature, often resulting in onerous and severe penalties for even minor procedural lapses. Recognizing the need to create a more business-friendly environment, significant amendments were introduced in 2019 and 2020 to decriminalize several corporate offences.
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