Cabinet to take up new Companies Bill: Khurshid



"We are going to move the Cabinet with the Companies Bill in the next (meeting) to place it in Parliament. It will be introduced in Parliament in the coming session," Corporate Affairs Minister Salman Khurshid said.

He said no substantial change in the Bill would be made at this juncture and all the changes necessary will be incorporated only after the Bill is introduced in Parliament.

The Companies Bill, 2008, introduced in the Lok Sabha last year, now stands lapsed and has to be re-introduced in Parliament.

However, the bill might not be the same as it was introduced last year. After Satyam, the government is likely to bring in more stringent rules and regulations.

"We don't want a complete let-go policy. But what we are looking for is certainly more power for nabbing the defaulters through bringing in changes in the Companies Bill," official sources said.

Several quarteres have been demanding more accountability of independent directors in the Bill and recognition of Serious Fraud Investigation Office with more powers in the legislation.

Also, rotation of auditors is another thing which has come up after the Satyam saga exposed glaring lapses in auditing practices. Indian institutional investors had sought rotation of auditors to make sure that auditors are not able to act in collusion with company promoters.

The auditing firm Price Waterhouse has come under the scanner after Satyam Computer Services Promoter Ramalinga Raju admitted to fudging the company's accounts for several years.

The other change, which is expected in the bill is regarding payment of remuneration to the top brass of a company.

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