Hitender Tanwar (Delhi) 03 August 2013
The Companies Bill 2012, a key legislation critical for the economic well-being of the country is stuck at the last hurdle. Though it has been passed by the Lok Sabha over seven months ago, it needs to be expeditely taken up and passed by Rajya Sabha, since Lok Sabha is nearing completion of its tenure and being a financial bill it will also lapse simultaneously.
This appeal is being made to seek your support in making this important piece of legislation see the light of the day. I personally urge you to vouch for this cause and promote this campaign by commenting, liking or sharing this with your friends on LinkedIn, Facebook and Twitter or email this to your connections. This Bill will ensure the safeguard of interests of retail investors as well as rejuvenate the reputation of Corporate India among global community.
The Companies Act 1956, even with the 25 amendments so far has failed to keep pace with the requirements of rapidly changing economic and business environment. In recent times, many scams have been unearthed but the old company law seems not to be fully armed to prosecute and punish the real culprits of these scams. Many small investors have been duped of their hard-earned money in the scams emerged due to the loopholes in the present law.
The Companies Bill 2012 after passing by Rajya Sabha will boost economic activities of the Country with enhanced Corporate Governance, protection of Investors with clearly stipulated rules and regulations, increased transparency in corporate structures and procedures and Social Responsibility of Corporate towards general public.
The Bill has gone through a long and vigorous process of drafting, redrafting and vetting at various levels. The process of planning and preparation of the new Company Law has taken almost 20 years. This Bill has been sent to two parliamentary standing committees headed by Hon’ble Sh. Yashwant Sinha and was cleared with inclusion of all the suggestions. Meanwhile, many industry associations, Professional bodies, Investors organizations and public at large have gone through its draft. Suggestions of all concerned parties have been taken and incorporated in the Bill.
In order to expedite the enactment of this important statute, there is a need to mobilize support and create a conducive environment for its passing. In order to take the necessary and much needed steps to pass the pending Bill, we need to highlight the importance of the said statute and bring it to the notice of members of Rajya Sabha and other concerned persons.
Regards and thanking you,
Pavan Kumar Vijay
- Trustee - Consumer Education & Research Center Ahmedabad (CERC)
- Past President - Institute of Company Secretaries of India (ICSI)
- Managing Director - Corporate Professionals Group
- Chairman - National M&A Council of Assocham