Companies Bill passage shows govt's commitment to new era of corporate regulation: CII

Confederation of Indian Industry (CII) Director General Chandrajit Banerjee has commended the government for prioritizing the passage of the Companies Bill through Parliament.

In a statement issued here, Banerjee said that the passing of the Companies Bill is a historic development and showed the government's commitment to usher in the new era of corporate regulation.

He further went on to say that the Companies Bill as in its present form, is a culmination of efforts put in for over a decade.

"We are happy that many of CII's views have been incorporated in the legislation. Now, that the law is ready, it is time to focus and work on the practical aspects of complying with its provisions," he said.

Banerjee added that the CII will continue to engage with the Ministry of Corporate Affairs to work out the modalities for various provisions that prescribe delegated legislation in the form of rules.

He made a specific reference to the clause dealing with CSR spend, which he described as vital.

Banerjee's response came soon after Parliament passed the historic Companies Bill 2012,which was tabled and moved by Corporate Affairs Minister Sachin Pilot.

The Bill was passed by the Rajya Sabha here today which had already been passed by the Lok Sabha in December 2012.

The new Companies Bill, on its enactment, will allow the country to have a modern legislation for growth and regulation of corporate sector in India.

The existing statute for regulation of companies in the country, viz. the Companies Act, 1956 had been under consideration for quite long for comprehensive revision in view of the changing economic and commercial environment nationally as well as internationally.

The new law will facilitate business-friendly corporate regulation, improve corporate governance norms, enhance accountability on the part of corporates/ auditors, raise levels of transparency and protect interests of investors, particularly small investors.

The salient features of the new Companies law are: Business friendly corporate Regulation/ pro-business initiatives; e-Governance Initiatives; Good Corporate Governance and CSR; Enhanced Disclosure norms; Enhanced accountability of Management; Stricter enforcement; Audit accountability; Protection for minority shareholders; Investor protection and activism; Better framework for insolvency regulation; and Institutional structure.