Will Amend Cos Act To Allow Multi-Layer Investment Entities, Hike Penalty On Auditors Finance minister Arun Jaitley on Wednesday proposed fresh amendments to the Companies Act to do away with the restriction of routing funds through only two layers of investment companies as well as seeking government approval for managerial remuneration. The amendments moved in the Lok Sabha have also sought to increase penalty for auditors by linking certain fines to the size of the offence and eased rules for private placement of shares. In general, the tone of the amendments -the second since the law was enacted towards the end of UPA rule in 2013 -is to make life simpler for India Inc -be it in providing loans to directors, calling board meetings or restrictions on appointment of an auditor of a company that has links with its “relatives“. The corporate sector had cited the new Companies Act, which replaced the 1956 law, as an example of how it was tough to do business in the country , whi