New company law on anvil: Manmohan
"It will be a comprehensive revision of the 50-year-old law and bring us in alignment with current needs," PM said.india Updated: Mar 18, 2006 20:33 IST
A new bill will soon be introduced to amend the existing company law and promote greater transparency and allow business houses to be more competitive globally, Prime Minister Manmohan Singh said on Saturday.
"We will be bringing a new bill to parliament in the next few weeks. This law will focus on promoting greater transparency and good governance in firms while at the same time giving them greater independence in operations," the Prime Minister said while launching MCA 21, an online system developed by the ministry of company affairs as part of India's e-governance plan.
The law "will be a comprehensive revision of the 50-year-old company law and bring us in alignment with current needs," he said.
He added: "We will also expedite the adoption of accounting standards in alignment with the International Accounting Standards so that we have better disclosure norms on a par with global best practices."
He also urged the ministry to look into issues such as limited liability partnerships and similar issues that are essential business structures in the emerging knowledge economy.
"The ministry also needs to get the Competition Commission fully functional because an active competition body is an essential element in the architecture of a modern market economy," the Prime Minister said. The Competition Commission is a department of the ministry of company affairs.