Govt. Ready to Amend Cos Act

Corporate India, which has been lobbying to make the new Companies Act less onerous, has the Government’s undivided attention. The Corporate Affairs Ministry is examining closely all concerns raised by the industry and is open to making changes to the Act and/or the Rules.

“We are going through the suggestions, point by point and clause by clause. We will put it all in a tabular form for us to understand. We will see if modification or tweaking of rules is sufficient or if there is a requirement for an amendment,” Minister for State for Finance and Corporate Affairs Nirmala 
Seetharaman told Business Line . The new Companies Act, replacing the 1956 law, was passed last year. Many of its provisions are yet to be implemented. India Inc has criticised the new Act for lacking clarity and being too stringent. In the absence of clear clarifications from the Ministry, companies have been interpreting the provisions in different ways.

Business Line, New Delhi, 24-06-2014