Revisionof companiesact
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The document summarizes the process of comprehensively revising the Companies Act of 1956 in India. An expert committee headed by Dr. J.J. Irani was formed in 2003 and submitted recommendations in 2005. Based on these recommendations and stakeholder consultations, the Companies Bill 2008 was introduced in Lok Sabha in 2008 but lapsed due to the dissolution of the 14th Lok Sabha. The bill was reintroduced as the Companies Bill 2009 in August 2009.
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Analysis of major changes brought by companies bill 2012
This document provides an overview and analysis of key provisions in the Companies Bill 2012 relating to enhancing corporate governance standards in India.
Some key points discussed include:
1) Mandating CSR spending of 2% of average net profits for large companies. This would make India the first country to mandate CSR spending through statute.
2) Strengthening rules around independent directors, including definitions, minimum numbers on boards, and responsibilities of boards and committees.
3) Expanding auditors' powers, duties, and accountability. Introducing concepts like cost audit, internal audit, and a National Financial Reporting Authority.
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This document provides an overview and analysis of the Companies Bill 2012 passed by the Lok Sabha in India. Key points include:
- The Companies Act 1956 is being replaced due to changes in the national and international economic environment and recommendations from committees like the J.J. Irani Committee.
- The new bill seeks to update company law provisions related to incorporation, share capital, prospectus, and other areas to adapt to changing circumstances.
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The Companies Act, 2013 has become the law of the land after being notified on 30 August, 2013. The law, which was in the making for more than a decade, ushers in a new era for corporate regulation in India. It introduces massive changes in the way companies govern themselves, raise money and interact with stakeholders. By laying stress on self-regulation and disclosure with minimal Government intervention, the law lays more responsibility on corporates. With 99 sections out of a total of 470 sections already in force, the legislation is amending the way companies operate and are regulated in the country.
CII has been instrumental in ensuring that industry voices were heeded to during each stage of evolution of the Act. Due to concerted efforts, the current form of the Act is a marked progression over the earlier versions which prescribed more rigorous and stringent provisions. Our advocacy still continues with formal submissions on subordinate legislation that forms part of over 70% provisions of the Act. With the Ministry of Corporate Affairs currently working on finalizing rules with views from stakeholders, CII recommendations to the first batch of draft rules have already been submitted on 10 October, 2013. Building up of industry views is currently underway, based on which detailed inputs would be submitted on the remaining sets of rules as well. Submission of formal representations is also being supplemented with industry interactions with the Minister for Corporate Affairs and others at the helm of affairs at the Ministry.
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