The Company Law Committee (CLC) has presented its Report on Decriminalization of the Limited Liability Partnership Act, 2008. The CLC was setup on 18th September, 2019 to make recommendations to the Government inter-alia on further decriminalization of certain “compoundable offences”, consequential amendments and certain other changes in the LLP Act, 2008 to facilitate and promote ease of doing business and ease of living.
The Committee appreciated the inputs received from Institute of Company Secretaries of India.
The Committee had submitted its report on 04th January, 2021 and made recommendation to decriminalize twelve compoundable offences and omission of one penal provision in the Act. No change has been suggested in the serious non-compoundable offences provided under the LLP Act. The Report is divided into three chapters.
Chapter I deals with the decriminalization of offences in the LLP Act, Chapter II deals with the ease of living related changes and Chapter-III deals with miscellaneous provisions. The Committee decided to adopt the same principle-based approach which was adopted by it to recommend decriminalization of certain provisions of the Companies Act. 2013.
Further, the CLC highlighted the need for the creation of a class of ‘small LLPs’ which would be subject to lesser compliances, fees and penalties to reduce the costs of compliance. MCA has invited public comments/ suggestions on the recommendations of the Committee to this Ministry latest by February 02, 2021 through email at email id : [email protected]