The government is all set to further reduce the provisions that attract prosecution for violation of the Companies Act, while looking to introduce a settlement mechanism and “deferred prosecution agreements” under the law to ease the burden on the corporate sector.
A committee headed by corporate affairs secretary Injeti Srinivas will examine various options, including the feasibility of “deferred prosecution agreements”. Government officials said, through the mechanism, a company can commit to take remedial measures to cure defaults within a specified timeframe and will only face prosecution in case it fails to deliver on its promise.