The Lok Sabha passed a bill to amend the companies act to strengthen the corporate governance standards, initiate strict action on defaulting companies and to help to enhance the simplicity of working together in the nation.
Arjun Ram Meghwal, Minister of State for Corporate Affairs, guiding the Companies (Amendment) Bill, 2016, likewise said that NSEL and PACL scams were an inheritance of the past administration which the present government is attempting to address. Mr. Meghwal also stated that the current bill will help in increasing the economy of the country. The two main objectives the bill is corporate governance and to protect the investor, said the minister.
Objective of the bill:
The bill aims at simplifying the procedures and makes compliance easy. It also proposes to take strict actions against the defaulting companies. Replying to the concerns of the opposition members that the proposed amendment might weaken the objectives of the Companies Act, 2013, Mr. Meghwal stated that the act has not diluted the objectives of the act and pointed that the amendments will provide relief to small investors. He also stressed that the bill aims at strengthens the corporate governance and improves transparency and improve the country’s position in conducting business with ease.
The bill has more than 40 amendments and was passed by a voice vote. It seeks to amend the Companies Act, 2013, which was passed amid the past UPA administration.