'Companies Bill to be passed in monsoon session'

More representation for women on cards

The Companies Bill 2012 is likely to be passed in the coming monsoon session of Parliament, said Corporate Affairs Minister Sachin Pilot, as there is a broad political consensus on the legislation that aims at plugging loopholes in the system for better corporate governance and business environment.

“This bill has been well thought out by all the stakeholders on board. There is no question of negotiating the terms of the bill.  There is broad consensus of all political parties that it is a positive bill,” Pilot said.

India’s first Companies Act was enacted in 1919 in colonial times. After independence, a new Companies Act came into force in 1956. Since then, it has been amended 25 times.

The new Companies Bill 2012 was passed by the Lok Sabha after 11 years of deliberations.

The minister also said the Companies Bill has defined the word ‘fraud’ categorically, which had so far not been defined in the Companies Act.

“There are around 1.2 million companies registered in India. We are looking at lesser regulations, more compliance, strict enforcement and action and freedom for entrepreneurs.” Pilot said the new bill even mandated that for certain class of companies there should be one woman director on the board.

Referring to chit fund scandals, he said, “All these chit funds and similar businesses have to be registered with the Registrar of Chit Funds in the state governments. The Serious Fraud Investigation Office (SFIO) is investigating all the 54 companies against which complaints have been received.”

Regarding the probe by the Justice Mudgal Committee that looked into WalMart’s lobbying activities to enter India, Pilot said, “We have received the report...I will be presenting the report along with the actions which will be taken.”
He said there is a need to define the word lobbying legally.