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.