What's happening in the new companies act, 2013?

What's Happening in the New Companies Act, 2013?

The Confederation of Indian Industry (CII) has written to the government urging it to change Section 182 (3) of the new Companies Act that says corporates must disclose names of political parties they give money to in their profit and loss account. Political parties for this purpose are defined as those registered under Section 29A of
the Representation of People Act, 1951.

Section 182 (3) reads: "Every company shall
disclose in its profits and loss account any
amount...contributed by it to any political
party...giving particulars of the total amount
contributed and the name of the party..."

The earlier version of the companies law allowed corporates to name persons while disclosing political funding.

Most companies, therefore, avoided naming a political party, a senior industry executive said, on the condition of anonymity. "Such a clause will put us in a discomfiting position vis a vis political parties," this executive said.