New DElhi, Aug 04 : The Joint Parliamentary Committee reviewing the proposed changes to the Companies Act has recommended a series of reforms aimed at modernising corporate governance and strengthening India’s business environment. Among its key suggestions is lowering the minimum age for appointing managing directors (MDs) and whole time directors from 21 years to 18 years, while increasing the upper age limit from 70 to 75 years without requiring a special resolution.
The committee, headed by BJP MP Sudheer Gupta, submitted its report in Parliament, stating that reducing the minimum age would encourage greater participation of young professionals in corporate leadership. It noted that the proposal aligns India with global practices followed in countries such as the United States, Singapore, Germany, and Australia. The Ministry of Corporate Affairs also informed the panel that a similar recommendation had earlier been made by the High-Level Committee of NITI Aayog.
Besides supporting the inclusion of younger talent in company boards, the committee endorsed further decriminalisation of corporate law to improve ease of doing business. However, it advised against some of the proposed amendments, including a provision related to the National Financial Reporting Authority (NFRA), recommending financial penalties instead of eliminating the existing requirement.
The report also called for establishing dedicated benches within the National Company Law Tribunal (NCLT) to exclusively handle insolvency matters under the Insolvency and Bankruptcy Code (IBC). According to the panel, specialised benches would help ensure faster resolution of insolvency cases, prevent erosion in the value of distressed assets, and allow regular NCLT benches to focus on mergers, restructuring, and other corporate matters without procedural delays.
On corporate social responsibility (CSR), the committee recommended retaining the current eligibility threshold of ₹10 crore in net profit. At the same time, it suggested allowing smaller companies to make in-kind CSR contributions, maintaining a negative list of ineligible implementing agencies, and ensuring that any exemption powers remain with Parliament rather than being delegated to the executive.
In its extensive report exceeding 1,100 pages, the committee also proposed introducing a new legal framework to facilitate the seamless re-domiciliation of foreign companies to India’s International Financial Services Centre (IFSC). The recommendation is aimed at supporting the growing trend of Indian-origin businesses seeking to relocate overseas entities back to India without first winding up operations in their home jurisdictions.
The proposed framework would address taxation, capital gains, stamp duty, transfer of assets and liabilities, compliance requirements, and continuity of legal obligations. The committee said such measures would make the reverse-flipping process smoother and strengthen India’s position as a preferred destination for global corporate operations.
Overall, the panel’s recommendations seek to promote entrepreneurship, streamline corporate regulations, improve insolvency resolution, and enhance India’s competitiveness as a global business hub.