ICSI plans model Companies Act

The Institute of Company Secretaries of India (ICSI) is working on a simple 'model companies act' that will be user-friendly and least costly to implement.

An expert group has been set up for drafting "simple" companies laws, R Ravi, president of ICSI, said here on Thursday.

Ravi said the ICSI is in the process of launching a post membership qualification course in corporate governance.

Being a multi-disciplinary professional, a company secretary can render services in multinational regulatory framework and corporate governance, business process outsourcing, commercial arbitration, fund raising, intellectual property rights, legal and compliance management, Ravi added.

The ICSI is proposing through the Union ministry of labour the creation of a mechanism that will assure higher standards of compliance in labour law matters.

Ravi said the institute is preparing a detailed checklist and guidance note for its members to issue independent professional assurance of compliance efficiently.

N K Jain, secretary, ICSI, said the institute is working to improve interaction with the Securities and Exchange Board of India, the Reserve Bank of India and other government departments.

ICSI has also proposes to move the ministry of commerce for introduction of a separate head to the corporate governance and company secretarial services under the services sectoral classification of the World Trade Organisation in concert with the professions in other countries.

On the role of company secretaries, Jain said: The institute had initiated process of preparation of modules on segmentwise role of company secretaries. The institute has released a book containing 18 modules covering segments such as business process outsourcing, banking industry, NGOs, stock brokers".