Campaign for passing Companies bill in monsoon session

Key stakeholders come together online as Bill still in limbo seven months after cleared by Lok Sabha

A group of key stakeholders in the affairs of corporate world such as chartered accountants, lawyers, company secretaries and investors associations and even some companies have come together to launch a campaign to sensitise leaders in Rajya Sabha to take up the companies Bill for discussion and clearance in the upcoming monsoon session of the parliament.

The Companies Bill 2012, a key economic legislation is stuck at the last hurdle. Though it has been passed by the Lok Sabha over seven months ago, it is still in the limbo because it has not been cleared by the Rajya Sabha.

Being a financial bill, it will lapse with the dissolution of the Lok Sabha, if not cleared by the upper house.  

The campaigners are gathering support both online and offline. A website by name supportcompaniesbill.com has been launched and several social media sites such as facebook, LinkedIn and twitter are being tapped to mobilize public support for the bill.

“This appeal is being made to seek your support in making this important piece of legislation see the light of the day. I personally urge you to vouch for this cause and promote this campaign by commenting, liking or sharing this with your friends on LinkedIn, Facebook and Twitter or email this to your connections. This Bill will ensure the safeguard of interests of retail investors as well as rejuvenate the reputation of Corporate India among global community,” Pavan Kumar Vijay, managing director, Corporate professionals group, who is organizing the campaign said in the website.

Vijay and his team are planning to collate the responses from the various stakeholders and bring it to the attention of minister of corporate affairs Sachin Pilot and the chairman and members of Rajya Sabha.

The website that went online a couple of days ago has already received over 3,600 visitors with over 1,200 expressing their support in the form of comments.

"Indian economy is passing through very hard times and if adequate reform measures not taken, then India can face 1991 type of crisis again... It is time that politics is kept aside and decisions are taken keeping in mind what is good for economy, said Manish Goyal, a chartered accountant, in a comment.

R K Gupta, president and company secretary, Bhushan Power & Steel Ltd commented, "To keep in pace with international standard and in the interest of economic growth, corporate governance and transparency and change in outlived provisions, Companies Bill must be passed."

There is a feeling among the professionals that some quarters within the corporate India prefer status quo. The new bill comes with provisions for several investor friendly and pro-governance measures such as class action suits, corporate social responsibility and provisions for women directors etc.

“Such and important piece of legislation of our country not getting proper attention of our legislators is not an encouraging and good sign. I fully support this Companies Bill 2012 to come into effect immediately,” CS Dhanpal of Dhanpal & Associates said.