On Monday the Company Law Committee i.e. the CLC released the second report which enclosed many recommendations in order to make some major changes in the Limited Liability Partnership Act of 2008. This committee was set up in the year 2019 September. The main purpose of the committee was to re - categorise some of the offences mentioned under the Companies Act of 2013. It included civil offences as well as the review of various provisions of the Companies Act as well as the Limited Liability Partnership Act of 2008.

The major recommendations which were included in the report dealt with the decriminalization of certain offences as mentioned under the act. The Committee after analysing the act of Limited Liability Partnership and suggested that there is a need to decriminalize at least 12 offences mentioned under the act. They said that there should be an in house adjudication mechanism who should handle these offences as well as removing one offence from the act. They also introduced the concept of small Limited Liability Partnerships as well as granting permission to the Limited Liability Partnerships to issue the non - convertible debentures. These were some of the major changes that were introduced by the Committee.

In one of the reports Mr Rajesh Verma, the Corporate Affairs Secretary who also chaired the Company Law Committee said, “I am confident that the recommendations of the committee will result in incentivizing micro and small business enterprises to convert into bodies corporate such as LLPs and will create congenial business climate based on trust and compliances”.

Another step taken towards facilitating the ease of doing business is that the Ministry of Corporate Affairs has also asked for comments on the recommendations which were given by the Committee in regards to the changes in the Limited Liability Partnership Act. The date for filing the comments is till February 2, 2021.