Companies Bill likely to come up in Budget session
The government today said the new Companies Bill, which seeks to replace a half-a-century old Act, will come up for consideration in the Budget session of Parliament.
"Not this session. Companies Bill 2009 will come next session," Corporate Affairs Minister Salman Khurshid said on the sidelines of a SKOCH event here when asked if the new Companies Bill will come up for consideration and passage in the ongoing Winter session.
The Companies Bill 2009, which lapsed with the dissolution of the 14th Lok Sabha, was reintroduced in the Lok Sabha in August last year. Subsequently, in August this year the Parliamentary Standing Committee on Finance gave its report after examining the provisions of the law.
"It's a huge report. We spent weeks reading it. We will have to see whatever standing committee has recommended, suggested finds its way in the bill. The draft will have to be looked at carefully not just by us but also the law ministry," Khurshid added.
The new Companies Bill, which seeks to fix more responsibility on independent directors, comes in the backdrop of the multi-crore accounting fraud in Satyam Computer Services that exposed gaping holes in the existing corporate governance norms in the country and highlighted the need for stricter norms.
The Bill will also protect the rights of the minority shareholders, bring about responsible self-regulation with adequate disclosure and accountability, and lesser government control over internal corporate processes.
The Minister, however, was hopeful that the amendment to the Competition Act 2002 to notify sections 5 and 6, which will give the Competition Commission of India the power to vet high voltage mergers and acquisition, will be brought up for consideration in the Winter session.