Tuesday 18 December 2012

Lok Sabha & Raj Sabha passed up amended Companies Bill


Lok Sabh passed up amended Companies Bill


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New Delhi, Dec 18 (IANS) The Lok Sabha Tuesday took up for discussion and passing the amended Companies Bill that would give more statutory powers to the Serious Fraud Investigation Office (SFIO) to tackle corporate fraud and protect small investors, regulating loopholes on chit funds.
Corporate Affairs Minister Sachin Pilot moved the Amended Companies Bill, 2011, that will replace the Companies Act of 1956, which was amended several times.
The Bill also aims to make corporate governance more transparent, independent directors more accountable and corporate social responsibility compulsory.
The government is aiming to avoid corporate frauds like that took place at Hyderabad-based Satyam Computer Services in 2009.
With the passage of the bill, there will be better tie-ups between investigative agencies at the state and Centre, the income tax department and the information technology ministry with SFIO.
Under the new regulations, SFIO would get powers to file cases, take action against culprits and coordinate with other investigative agencies such as the Central Bureau of Investigation and the enforcement directorate in case of any corporate fraud

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