Companies bill 2012

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Nisha Patil (Querist)
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29 June 2012 will the sanction to the companies bill 2012 by the parliament have an effect of repealing/ rendering the Companies Act 1956 non-applicable ??

Ajay Mishra

Ajay Mishra (Expert)
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29 June 2012 Hi

After enforcement of Companies Bill 2012 the old Companies Act, 1956 will not be enforced thereafter.

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Nisha Patil

Nisha Patil (Querist)
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29 June 2012 there has been a drastic decrease in the number of provisions provided in the bill as compared to its parent act. will it lead to compromise on the matters dealt wit in the act?

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Ajay Mishra

Ajay Mishra (Expert)
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29 June 2012 Yes,
Standing Committee in Parliament is studding all matter as you explained. We hope the will give a good new Companies Act.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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29 June 2012 Companies Bill 2011 will bring about a more structured corporate framework, which is very much in line with the changing times that India is witnessing today.

This new Bill includes many provisions that recognise the changing times and includes affirmative actions for the protection of small investors, defining revised roles of directors to make them more effective and accountable, enhancing responsibilities of auditors as gatekeepers and laying down provisions that include severe punishment for fraud, false evidence or known misconduct for every person who has a duty of trust towards a company.

However when it comes to the implementation and execution front, our system has always lacked in putting forth a foolproof framework free off any bureaucracy. Hence, one has to wait and watch how the actual act will work and help protect investor interests.

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Nisha Patil

Nisha Patil (Querist)
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30 June 2012 thanks ajay and mitesh.
let s just hope that it fulfills its preamble.
but what is the possibility of its approval considering that it was in debate since 2009???

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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30 June 2012 Dear Nisha,

The government is going mysteriously slow on pressing for the passage of the Companies Bill, 2011. Most of the recommendation of Parliament’s Standing Committee on Finance have been accepted by the government. The only reason could be that some corporate houses want the bill delayed.

Having introduced the Bill in Parliament in December 2011, the government cannot pull it out unless it gets leave of the House to withdraw it. The Bill has neither been withdrawn nor pressed for passage.

Another hurdle for the new bill is that with DTC, GST, IFRS, etc already in the pipeline without knowing the length of the pipeline the position of this bill is uncertain.

Nisha Patil

Nisha Patil (Querist)
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02 July 2012 mitesh
i quote you "another hurdle for ... DTC, GST, IFRS".. can you elaborate?????

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