Lokpal jam likely to delay companies bill, says Moily

The government is unsure of passing the much awaited companies bill during the current session of Parliament thanks to the logjam due to the controversy on the Lokpal Bill. HT reports.

The government is unsure of passing the much awaited Companies Bill during the current session of Parliament thanks to the logjam due to the controversy on the Lokpal Bill.

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“The companies bill will be passed, if not in this session, then definitely in the winter session,” corporate affairs minister Veerappa Moily, told reporters on the sidelines of a Ficci function. He said the ministry is ready with the final draft.

The parliamentary standing committee on finance has already given its observations on the bill in August, 2010.

Moily had also earlier met industry bodies such as CII and Ficci on the issue.

The role of independent directors would also be specified in the new bill. Under the new Companies Bill, these directors, present or absent, will be held accountable for all board level decisions, which may lead to lack of governance or discrepancy in the future.

Besides, the bill has also underlined the need for companies to spend at least 2% of their net profits on corporate social responsibility (CSR). It would also allow class action suits to be implemented.

The new bill would also allow the Serious Fraud Investigation Office (SFIO) to chargesheet and arrest any person found guilty.