Consensual approach to companies law sought

The ministry of company affairs proposes to introduce an enabling clause in the new Companies Act specifying prior consultations on proposed changes in rules before their notification.

"We will put adequate safeguards in the law to ensure that rules are not changed arbitrarily," a ministry official assured. The proposed changes would be put on the website for comments for around 15 days.

Fears were being expressed in various quarters that the concept paper for overhauling of the Companies Act gave the government power to change too many provisions at will.

This was also seen as an attempt by the government to exercise control over the working of companies as well as other institutions like the Institute of Chartered Accountants of India (ICAI).