The Concept Paper seeking to review the Companies Act, 1956 has evoked a very wide and diverse response. This has been welcomed by the Ministry of Company Affairs. There may be different views on the ideas presented in the Concept Paper. But the debate on these issues would be useful in developing a new legal framework. The Government has to weigh the pros and cons in totality and consider the interests of all stakeholders so that a balanced and fair system develops. The Minister of Company Affairs, Shri Prem Chand Gupta, said this while addressing the first meeting of the Expert Committee to advise the Government on the new Company Law here today.
He said the emerging economic scenario requires good cooperate governance to protect the interests of the investors and other stakeholders. In a competitive and technology-driven business environment, great autonomy of operation and self-regulation must be matched with greater responsibility on the part of the corporate sector. This must take place through proper compliance of the law, transparency through disclosures and good corporate governance, the Minister said.
Shri Gupta told the meeting that the Government views the problem of companies which vanish after collecting huge funds from the public, with concern. Perhaps it would be possible to provide for appropriate action against persons responsible for such behaviour. The investing public should be alerted about the activities of such persons by placing restrictions on them in promoting and managing new enterprises. Shri Gupta said his Ministry is developing a project for computerising services like filing and registration. This would help the public in filing and accessing data. The project is expected to be operational by early next year, he added.
(Release ID :6229)