 "The pioneer looks to exit the stage")
The Ministry of Corporate Affairs (MCA) has expedited the corporate exit process from 180 days to 100 days in the current financial year through its Centre for Processing Accelerated Corporate Exit (C-PACE), as announced by MCA secretary Manoj Govil on Wednesday.
Addressing attendees at the 55th anniversary of the Institute of Company Secretaries of India, Govil highlighted an 11 per cent year-on-year increase in company and limited liability partnership incorporations in the first half of this financial year.
Furthermore, Govil revealed the MCA's intention to commence a comprehensive review of all its regulations later this month. This initiative aims to alleviate cumbersome compliance and eliminate obsolete laws. He emphasised, “Company secretaries, being the primary compliance experts on company matters, will significantly contribute to this review.”
In her Budget speech last year, Finance Minister Nirmala Sitharaman had introduced the inception of C-PACE for the 2022-23 fiscal year. Operational from April 1 this year and situated at the Indian Institute of Corporate Affairs in Manesar, C-PACE's primary role is to streamline the voluntary winding-up of companies to under six months. Previously, the state registrar of companies managed the STK forms responsible for company removals.
During the same event, President Droupadi Murmu underscored the imperative role of Company Secretaries in ensuring businesses do not exploit the government's legal provisions designed to enhance the ease of doing business. Addressing the importance of integrity in business, President Murmu stated that corporate management of resources should adopt a trusteeship model. She articulated, “India's future in corporate governance relies on the determination and actions of Company Secretaries. Their efforts can position India as an exemplar of both 'Good Corporate Governance' and 'Good Governance'.”
Finance Minister Sitharaman, also present at the occasion, highlighted the government's numerous measures to foster ease of doing business. These include decriminalising minor offences, introducing the Insolvency and Bankruptcy Code, simplifying regulatory frameworks, implementing tax reforms, and eradicating redundant compliances and laws. She disclosed the removal of 39,000 superfluous compliances and 1,500 outdated laws. Thanks to FDI reforms initiated since 2014, India attracted approximately $230 billion in foreign investments over the past three fiscal years. She accentuated, “This influx of investments underscores a pronounced interest from companies to invest and operate in India, and this is where proficient corporate governance, steered by company secretaries, becomes invaluable.”
Sitharaman detailed that investments predominantly focus on areas like physical infrastructure development, alleviating logistics challenges, enhancing regional connectivity, augmenting port capacity, and boosting overall efficiencies.
