The global economic meltdown may bring in a major change in the final layout of the new company law, which is now being considered by a Parliamentary Standing Committee. The Companies Bill 2008, which aimed to reduce government intervention in Internal affairs of the companies and substitute it with disclosures and their self- regulation, may now be reworked. A government official said on the condition of anonymity that there could be changes in the new law, as recent economic trends worldwide have suggested a need to keep a close regulatory watch on corporate behavior. Noting that the Bill was drafted at a time of global economic prosperity and that the recent financial turmoil has reflected the need for greater oversight, he said a fine balance between companies’ liberty and the overall interest of the economy has to be struck. The proposed law has been prepared after five years of consultations and proposed relaxation for companies on the regulatory front. However, the Standing Committee is now expected to judge the effectiveness of these proposals in the light of the global economic crisis.
