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Company Law Committee suggests fractional shares issuance, easier fund raising norms for distressed cos

Company Law Committee suggests fractional shares issuance, easier fund raising norms for distressed cos

Enabling issuance of fractional shares, easing norms for distressed companies to raise funds and recognising special purpose acquisition companies as well as permitting their listing on stock exchanges are among the recommendations made by the government-constituted Company Law Committee.

The panel, currently chaired by Corporate Affairs Secretary Rajesh Verma, has also suggested prohibiting the conversion of co-operative societies into a company and replacing requirement of furnishing affidavits with the filing of self-certification/ declaration.

The Company Law Committee (CLC) was constituted by the corporate affairs ministry to make recommendations on changes aimed at facilitating and promoting greater ease of doing business as well as ensuring effective implementation of the Companies Act, 2013 and the Limited Liability Partnership Act, 2008.

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