Centre to enact new company law this fiscal
New Delhi, Sept. 7: The government is confident of enacting the new company law this fiscal. In the just concluded monsoon session of Parliament the Centre had submitted the report of the Parliamentary standing committee on finance on the Companies Bill 2009.
“Now we will table the revised bill by the winter session and by the end of this fiscal, you will see the bill becoming a law,” corporate affairs secretary, Mr R. Bandyopadhayay told reporters on the sidelines of a CII conference.
The companies bill for the first time introduces the concept of class action suits, which empowers investors to sue a company for mismanagement and claim damages. When former Satyam chairman B. Ramalinga Raju had admitted to committing fraud, the small investors were left with huge losses and they couldn’t file class action suits against the company and claim damages.
The Serious Fraud Investigation Office, will also get statutory status post the bill is passed in the Parliament.
The ministry of corporate affairs has accepted some 500 suggestions made by the parliamentary committee. “We are considering the committee's report with an open mind. Making legislative vetting wherever necessary. We appreciate the committee’s suggestions,” added Mr Bandyopadhayay.
He said that government is keen to implement the International Financial Reporting Standards .
Mr Bandyopadhayay said that the government is not under pressure from any quarter to implement IFRS rules, but is doing this in the interest of Indian companies to be at par with other developed countries while competing globally.
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