New Companies Bill to Be Approved During Monsoon Session

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Feb. 12 – India’s new Companies Bill is expected to be approved during Parliament’s monsoon session.

The new bill will replace the current Companies Act that has been in place since 1952. Corporate secretary R. Bandyopadhay told Press Trust of India: “With the speed at which the parliamentary standing committee is proceeding with the discussions, I am hopeful that the Bill would be passed in the monsoon session.”

The draft of the new Companies Bill was again released for consideration last August. When the new law is approved it will enforce stricter corporate governance norms and align regulations based on the best global practices. Specifically, the bill will guard against corporate fraud in light of the recent Satyam scandal.

Moreover, it will bear more of the responsibility to the corporate directors as well as dictate a code of conduct that should be used to protect minority shareholders rights and encourage more transparency.