Parliament passes Companies Amendment Bill

Parliament passes Companies Amendment Bill

The Parliament has passed the Companies (Amendment) Bill, 2017 with the Rajya Sabha adopting it.

The Lok Sabha had cleared the bill earlier in the monsoon session.

The bill intends to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve ease of doing business.

It provides for more than 40 amendments to the Companies Act, 2013, which was passed during the previous UPA regime.

Replying to issues raised by the members during a discussion on the bill in the Rajya Sabha, Minister of State for Corporate Affairs P P Chaudhary said the amendment would ensure better corporate governance and improve the ease of doing business in the country.

The minister dismissed the apprehensions raised by members that the government was not doing enough to ensure that companies comply with the Corporate Social Responsibility, CSR, provisions.

“The government has already issued notices to many companies for not complying with CSR provisions under the Companies Act,” Chaudhary said.

On the government’s promptness in taking action against companies at fault, Chaudhary said the government has taken several step against such firms which were not taken in last several years. He said the government has taken action against over two lakh shell companies and Special Fraud Investigation Office was looking into it.