The union cabinet is likely to take up the proposal to amend the Companies Act on Thursday.
The corporate ministry is seeking to bring changes in the Act on the back of recommendations made by a panel headed by the corporate affairs secretary Injeti Srinivas.
The amendments will be moved by an ordinance and that is what the ministry of corporate affairs has been proposed, said sources familiar with the matter.
The panel had recommended capping of remuneration of independent directors and how the roles of directors can come into the preview of the government. The panel had also proposed the idea of decriminalising 83 offences under The Companies Act, sources privy to the matter told CNBC-TV18.