New Company Law Bill to be introduced in ensuing Budget Session
18 Feb '08
3 min read
The draft of the new Company Law Bill is being given final touches and will be introduced in the ensuing Budget Session of Parliament, Mr. Prem Chand Gupta, Union Minister for Corporate Affairs, announced.
Addressing the plenary session of FICCI's 80th AGM on 'The Corporate Affairs of India: The Way Forward', the Minister said: “The new law will promote shareholders' democracy, replace the 'approval based system' with a system of responsible disclosures, promote good corporate governance and effective protection of investors.
Mr. Gupta said, the law would be administered by the Competition Commission of India (CCI). “ In order to address the various issues that came up during the litigation against the proposed CCI, the law has been amended and now we are in the process of operationalising the CCI at the earliest.”
The Minister sought to set at rest concerns of the trade and industry over 'combination regulation'. “I have discussed these issues with my officers in the Ministry as well as officers of the CCI and found that most of the apprehensions to be the outcome of incomplete and inadequate appreciation of the law and the fear of the unknown,” he said, adding that there appears to be a presumption that the provisions of the law are going to be implemented with a negative mindset.
In this context, Mr. Gupta said he had advised his officers to address the genuine concerns of all the stakeholders through regulations, which should be framed through a transparent and wide consultative process.
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