The Minister for Company Affairs, Shri Prem Chand Gupta, today asked official liquidators to take all possible steps to avoid thefts in the properties of companies under their custody. They must exercise due diligence to maintain the properties carefully to keep their value intact. This would be in the interest of stakeholders, particularly the small investors and depositors and the labourers. Any laxity would not only harm their interests but also the credibility of the system. Shri Gupta was speaking at a conference of official liquidators in New Delhi. He said there are more than 5700 companies under liquidation at present and the work of official liquidator is very important in today’s business environment.
The Minister recalled that the Government has already brought amendments in the Companies Act, 1956 to streamline the liquidation proceedings. Accordingly, a new institutional framework is envisaged in the form of the National Company Law Tribunal. BIFR and Company Law Board would be wound up. Then provisions relating to the winding up and liquidation of companies will be transferred from High Courts to the National Company Law Tribunal. The Tribunal may also appoint official liquidators from a panel of private professionals constituted by the Central Government, Shri Gupta added.
(Release ID :4462)