Companies Act now wholesome, says ICWAI

The Institute of Cost and Works Accountants of India (ICWAI) has welcomed the move by the Union government to make the Companies Act more comprehensive and wholesome.

Addressing a press conference, H R Subramanya president of The Institute of Cost and Works Accountants of India, said: "This is the first time that a Bill is being discussed at professionalising corporate governance by providing for the mandatory appointment of a chief financial officer in the Act itself."

He said that ICWAI welcomed the move taken by the ministry on issues like an assurance mechanism to satisfy the stakeholders, conducting special audit, induction of independent directors on the board and deterrent penal provisions.

He said that for the first time in the history of the Companies Act, 781 sections and 15 schedules have been reduced to 289 sections.

"The new Companies Bill takes note of cross-border operations and investments earmarking a special chapter for foreign companies incorporated outside India," Subramanya said.