In just 15 days - from September 16, 2006, when the government made electronic filing of documents using digital signatures by authorised signatories mandatory, till September 30—a total of over 3,63,055 documents were filed electronically. September 30, 2006 was the deadline for filing such documents.

The company affairs ministry as highlighted this as one of the major initiatives it took last year for better governance of the corporate sector.
 
The other ones, the ministry said, were implementation of MCA21 e-governance project, segregation of defunct and inactive companies, introduction of LLP Bill and empowerment of investors.

The e-filing, the ministry said, would do away with problems associated with paper-based manual filing coupled with increased volumes of business. This also provides for search of comprehensive company database, including viewing of public documents online upon payment of necessary fees electronically.

Number games
• The e-filing would do away with problems associated with manual filing
• Out of 7.50 lakh firms, approximately 1.50 lakh companies are defunct
 
The ministry also found out that of 7.50 lakh companies registered, approximately 1.50 lakh companies are defunct or inactive. The implementation of MCA21 would help in clear identification of such companies, it said.

On its MCA21 project, the ministry said it has been launched across all 20 Registrars of Companies (ROC) jurisdictions in the country. MCA21 enabled the business to register a company and file statutory documents quickly and easily, and in a manner that is convenient. Public is empowered to get easy access to relevant records and get their grievances redressed effectively.

The Ministry took initiatives for comprehensive revision of the Companies Act, a new law on Limited Liability Partnership and notification of Accounting Standards. Based on the inputs received by the government, including the Irani Committee Report, the proposals for a new Companies Bill that would replace the Companies Act, 1956 are now being finalised.

It is expected that the new compact law would focus on shareholders democracy, a disclosure based regime, rational penal provisions with built-in required deterrence and sufficient protection for the interests of investors.