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Revisiting Coz Law Amendment Bill
July, 31st 2007
The much-awaited Company Law Amendment Bill may have to wait till the Winter Session of Parliament as the work on draft changes in the legislation would take a few more months.

The Minister for Corporate Affairs P C Gupta today informed members of the CII that the Government would like to introduce better transparency in the functioning of corporates and fixing accountability towards shareholders.

The Company Law Amendment Bill is aimed at protecting the interest of investors with stiffer disclosure norms. It proposes tougher penalties for defaults by managements.

"The legislative drafting of the revised company law is nearing completion and the final product will match industry's expectations," Secretary in the Ministry of Corporate Affairs Anurag Goel said at the launch of the National Foundation for Corporate Governance.

The Minister assured the industry that the number of independent directors on company boards would be decided in line with industry demands.

He said the Limited Liability Partnership Bill, which was introduced in December last year is pending with the Standing Committee.

"We hope that Standing Committee would finish its work in the next few months and the Bill will be passed latest in the Winter Session," Goel said.

He said the government is establishing an Indian Institute of Corporate Affairs for which many partnership proposals both from global and domestic institutions have been received.

The Government is also overhauling the Indian Company Law Service so that officials get oriented to new business environment and corporate requirements.
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