The Companies bill, which was placed in Parliament last year, is expected to become law by the end of the current fiscal year. The report of the Parliamentary Standing Committee on Finance on the Companies Bill 2009 was submitted in Lok Sabha last week. The bill seeks to replace the Companies Act 1956 to bring in greater transparency and more stringent corporate governance laws.
"We will table the revised bill by the winter session and by the end of the current fiscal year you will see the bill becoming a law," said R. Bandyopadhayay, corporate affairs secretary at a conference on corporate governance organised by the Confederation of Indian Industry (CII).
The bill seeks to introduce the concept of class action suits for the first time to provide more powers to investors in case of discrepancy and mismanagement from any company.