New Delhi, July 31: Naresh Chandra committee has suggested the creation of a new category of companies called 'small private companies' (SPC), a new law to enable professionals to form limited liability partnerships, and far-reaching amendments in the Partnership Act. The report, which mooted changes in several provisions of the companies act, proposes SPC, a new company classification that should be a registered as SSI unit with sales not exceeding Rs five crore and a paid-up capital and fresh reserves up to Rs 50 lakh.

Among the benefits SPCs can avail themselves of is waiver of the mandatory four board meetings every year and alteration in the items which mandatorliy need board approval, Chandra told reporters here today.
Earlier, the report was presented to the finance minister.
It also proposes a simplified exit framework for private companies by bringing in amendments to Section 560 of the Companies Act. It provides time limit of four months for exit. It suggested that a law be enacted to provide establishment of LLPS, initially for professional services like lawyers, company secretaries and doctors.
Bureau Report