Corporate Governance MCQ — 2 Practice Questions with Answers

Explanation

Statements 1 and 2 are correct. The Bill was introduced by Finance Minister Nirmala Sitharaman in Lok Sabha on March 23, 2026, and it proposes amendments to the Companies Act 2013 and LLP Act 2008. Statement 3 is incorrect — the Bill was referred to a Joint Parliamentary Committee (JPC), not a Select Committee of Lok Sabha. A JPC includes members from both Houses, while a Select Committee is limited to one House.

Explanation

Decriminalisation of minor offences means converting criminal liability for minor procedural violations (like late filing of forms, minor technical lapses) into civil penalties such as fines. This does not abolish all penalties (Option A is wrong), does not grant blanket exemptions to new companies (Option C is wrong), and does not affect serious offences like fraud which remain criminal (Option D is wrong). The change is specifically targeted at reducing disproportionate criminal prosecution for minor, unintentional lapses.