The new Companies Bill, which seeks to replace the legislation enacted way back in 1952, is likely to be approved by Parliament in the  monsoon session, corporate secretary R Bandyopadhay said on Thursday. “With the speed at which the parliamentary standing committee is proceeding with the discussions, I am hopeful that the Bill would be passed in the monsoon session.

The committee has held eight meetings so far,” Bandyopadhay told an Assocham event here. The government reintroduced the draft Companies Bill last August after the previous Bill lapsed.

With this legislation, the corporate affairs ministry seeks to change corporate governance norms and update the laws in accordance with the best global practices. The Bill, which also seeks to strengthen the norms for dealing with corporate frauds, comes in the backdrop of the multi-crore Satyam fraud last year that exposed gaping holes in the existing legislation and highlighting the urgency for adopting stricter regulations.

Bandyopadhay said the Bill seeks to fix more responsibility on independent directors and the Government is currently drafting norms for their appointment and code of conduct. The new legislation, he said, will also protect the rights of minority shareholders, bring about responsible self-regulation with adequate disclosure and accountability and lesser government control over internal corporate processes.

More Under Company Law

Posted Under

Category : Company Law (4052)
Type : News (13868)
Tags : Companies Act 2013 (2288)

0 responses to “New Companies Bill may be passed in the monsoon session to replace Companies Act, 1956”

  1. Pankaj M Sharma says:

    We have been hearing this for long. When will the Supreme court whose holding on to its verdict on National company law tribunal give its judgment on its Constitutionality.

  2. santosh kumar says:

    Respected sir,

    When will the new Act come into force

  3. CS. Sreekumar P.S. says:

    Dear Sir,

    Instead of Companies Act, 1952 it should be written as Companies Act, 1956.

    Regards,

    CS. Sreekumar P.S.
    SVJS & Associates
    Company Secretaries
    Ernakulam

  4. R.LGARG says:

    is it Cos. Ac 1956 or 1952 as mentioned by you

Leave a Reply

Your email address will not be published. Required fields are marked *