COMPANY LAW
| New Company Law by end of current fiscal Fri, 03 Sep 2010 |
| The Hindu New Company Law by end of current fiscal KOLKATA: India is set to get a ‘brand new Company Law by end of the current fiscal year' Union Minister for Corporate Affairs and Minority Affairs Salman Khursheed said here on Thursday. It would be a state-of-the-art law, he said adding that it might have a simple code on the liability of independent directors Addressing the members of the Bengal National Chamber of Commerce and Industry, he said the suggestions made by the Standing Committee of Parliament on the Companies Bill would need to be vetted by the Union Law Ministry after which it would have to be brought back to Parliament for passing it. “We are targeting the winter session, and if we somehow miss it, since it is very short, we will place it during the budget session,'' he said. The Minister was here on the occasion of the 38 {+t} {+h} National Convention of Company Secretaries, organised by the Indian Institute of Company Secretaries (ICSI) To a question on the changes suggested by the parliamentary panel, he said the panel asked the Ministry for some specifics. Citing an instance, he said the new Bill might have a comprehensive but simple code for independent directors. “We do not want people to get lost in provisos, it would be an exposition on the obligations and responsibilities of an independent directors and the kind of caveats that go with it,'' he added. Guidance had also been given on other issues like rotation of audit-firms, and accounting standards. Mr. Khursheed said that some changes might have to be made in the draft Bill to incorporate the recommendations. While pointing out that his Ministry was burning the midnight oil to examine the recommendations, the Minister said that the legislative work had begun but the Ministry did not want to cut any corners either. Land acquisition Later responding to a question on corporate social responsibility and corporate governance, he mentioned farmers' conflicts over land-acquisition. Noting the concerns voiced by his senior ministerial colleague, who he described as a prominent political leader from this region, Mr. Khursheed said dialogues were being held to find the best way forward on land-acquisition but it was important for industry to make the land-owners become partners in growth. “Business does not begin and end in the board-room or shop floor,'' he said. He said the Land Acquisition Bill was now before the Cabinet and his senior colleague Pranab Mukherjee was talking to Mamata Banerjee. In reply to a question on her concerns on this issue, he said that she wanted a certain ratio between compulsory land acquisition and purchase from the market. |
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