The bill comes at a time when companies are reeling under stress due the coronavirus pandemic. The Companies (Amendment) Bill, 2020 was passed by the Lower House through voice vote. The (4th amendment) Bill was introduced in the lower house in May, 2020 by Finance and Corporate Affairs Minister Nirmala Sitharaman.

To recall, the Companies Act 2013 is an Act of the Parliament of India which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company.