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New Companies Bill likely in Parliament during monsoon session

The government is keen to introduce the new Companies Bill in the monsoon session of Parliament, which begins on Wednesday.

Minister of State for Finance Satpal Maharaj says the Bill is aimed at ensuring more flexibility, greater corporate transparency and self-regulation on one hand, and better disclosure and more effective enforcement on the other.

In an increasingly liberalised market economy, the minister said there is an urgent need to put such regulatory framework in place as would facilitate internal vigilance, provide warning signals about the potential wrongdoers and ensure quick and severe punishment in case of default.

Satpal Maharaj said the Department of Company Affairs and its officers were called upon to provide not only prompt and quality service but also to be able to effectively enforce corporate laws and regulations. With this alone, the department could achieve its mandate to facilitate a healthy growth of the corporate sector in a changed economic ambience.

In a liberalised and highly competitive economic scenario, special measures and approaches were called for to promote efficient growth of joint stock companies. In this context, officers of the central Company Law Service, who have to work in close contact with the corporate sector, are required to upgrade their knowledge and skills and also to have a change of mindset to successfully enforce the corporate laws and regulations.

The minister said the government constantly endeavoured to ensure transparency and responsiveness in administration at all levels. Government officers, specially those at the 'cutting edge level', should be public-friendly and ensure that the public grievances redressal mechanism in their offices is both efficient and effective.

T S Krishnamurthy, secretary, department of company affairs, said in view of the new Companies Bill, the changes in the Department of Company Affairs and corporate sector would be significant. The department would play an important role in providing a conducive atmosphere and quality services to the corporate sector.

UNI