UPA Govt to introduce new Companies Act

Bangalore, Apr 27 (UNI) The Centre will come out with the New Companies Act, facilitating easy implementation and monitoring of the law, Union Company Affairs Minister Premchand Gupta informed today.

Talking to newspersons here, he said the new Act, replacing the 1956 Act, might be introduced in the coming Parliament session or during the monsoon session.

He said the new Act had been well trimmed and made more friendly.

The 1956 Act had been amended 24 times and had 786 provisions. It was challenged in the Supreme Court and steps had been taken to remove most of the hurdles.

''The new Act is very slim with only 400 provisions and it is modern and most friendly for implementation and monitoring,'' he added.

Mr Gupta said it was for the first time representatives of all industrial organisations in the country had been included in a Committee formed to study and come out with suggestions for introducing the new Act. ''The Committee has submitted its report and the Act is under preparation,'' he added.

To a question, the Ministry said the new Act might not face any objection as it had been well groomed and made more friendly. It would enable establishment of new companies without approval. Only disclosure would be demanded, he added.

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