29 June 2012
will the sanction to the companies bill 2012 by the parliament have an effect of repealing/ rendering the Companies Act 1956 non-applicable ??
29 June 2012
there has been a drastic decrease in the number of provisions provided in the bill as compared to its parent act. will it lead to compromise on the matters dealt wit in the act?
29 June 2012
Companies Bill 2011 will bring about a more structured corporate framework, which is very much in line with the changing times that India is witnessing today.
This new Bill includes many provisions that recognise the changing times and includes affirmative actions for the protection of small investors, defining revised roles of directors to make them more effective and accountable, enhancing responsibilities of auditors as gatekeepers and laying down provisions that include severe punishment for fraud, false evidence or known misconduct for every person who has a duty of trust towards a company.
However when it comes to the implementation and execution front, our system has always lacked in putting forth a foolproof framework free off any bureaucracy. Hence, one has to wait and watch how the actual act will work and help protect investor interests.
30 June 2012
thanks ajay and mitesh. let s just hope that it fulfills its preamble. but what is the possibility of its approval considering that it was in debate since 2009???
The government is going mysteriously slow on pressing for the passage of the Companies Bill, 2011. Most of the recommendation of Parliament’s Standing Committee on Finance have been accepted by the government. The only reason could be that some corporate houses want the bill delayed.
Having introduced the Bill in Parliament in December 2011, the government cannot pull it out unless it gets leave of the House to withdraw it. The Bill has neither been withdrawn nor pressed for passage.
Another hurdle for the new bill is that with DTC, GST, IFRS, etc already in the pipeline without knowing the length of the pipeline the position of this bill is uncertain.
CAclubindia
