The
government expressed hope on Friday that the new Companies Bill, which
promises tighter corporate governance norms and greater shareholder
democracy , will be passed by Parliament in the ongoing winter session.
|
| . |
'We
have handed over the Companies Bill to the Speaker, so we are hoping
that it will be brought up for discussion and passage in this Parliament
session,' Minister of State for Corporate Affairs RPN Singh told
reporters on the sidelines of an ICSI function here.
The Cabinet, late last month, approved the Companies Bill, 2011, which aims to introduce modern concepts like mandatory corporate social responsibility (CSR), class action suits and a fixed term for independent directors, among other things. Intended to replace the existing half-a-century-old Companies Act, the Companies Bill, 2011, has undergone several modifications in view of the Rs 14,000-crore Satyam accounting fraud. Among other things, it proposes to tighten laws for raising money from the public. The Bill also seeks to prohibit any insider trading by company directors or key managerial personnel by treating such activities as a criminal offence. Furthermore, it has proposed that companies should earmark 2 per cent of their average profits of the preceding three years for CSR activities and make a disclosure to shareholders about the policy adopted in the process. |