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New company law in winter session
October, 22nd 2007
Preparations for a new Company Law are in final stage and the bill would be introduced in the winter session of Parliament, Union Minister of State for Law and Justice K Venkatapathy said.

The new law was aimed at striking a fine balance between freedom and accountability and also provide a better and stronger mechanism for protecting the interests of investors, Venkatapathy said.

He was speaking on 'Quality of Legal rules covering protection of shareholders,' at Karunya University on the outskirts of the city.

With liberalisation and emergence of public participation in government companies through the disinvestment process or emergence of joint sector undertakings in diverse fields such as refineries and power, certain inadequacies of the existing law were pointed out, necessitating a review of the Companies Act 1956, he said.

Shareholding and share-trading were purely private and voluntary actions and did not fall under the domain of the government, he said adding the Mumbai Stock Exchange's Thirty share index Sensex was about to cross a historical high of 20,000 points anytime.

Recognising the need for sound regulation of security markets, modern economies have enacted suitable legislations and erected mechanisms to regulate them and ensure justice and fair play, Venkatapathy said.
 
 
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