Companies Bills to be tabled in Budget session

By Staff
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Google Oneindia News

New Delhi, Jan 27: The Companies Bill and the Competition Bill will be introduced in Parliament in the second half of the Budget Session, Company Affairs Minister Prem Chand Gupta said today.

Inaugurating the National Seminar on 'Limited Liability Partnership' (LLP) organised by the Institute of Company Secretaries of India (ICSI) here today, Mr Gupta said an Institute of Corporate Affairs with world class facilities was also being set up by the Ministry to better serve the corporate sector.

The Company Affairs is responsible for providing basic regulatory framework for enterprises for doing business in the country. Towards this end, keeping in view the emerging internationalisation of business, a flexible business structure in the form of LLP was envisaged by the introduction of LLP Bill, Mr Gupta added.

Speaking on the LLP, the Minister referred to reports of various committees and said that to initiate a consultative process to allow ideas, comments and suggestions to flow from all quarters on the proposals for a Limited Liability Partnership Law, the Ministry had placed a Concept Paper on LLP Law on its website.

After taking into consideration the views and suggestions of various stakeholders, the Government introduced in Parliament the LLP Bill.

In this context, Minister acknowledged the contribution of ICSI in providing its expertise in the exercise.

Limited liability partnership would provide the professional firms a platform to conduct their profession efficiently which would in turn not only increase their capability to compete with global firms but also allow them to make their presence felt in international market for professional services, Mr Gupta said.

The introduction of LLP form of business would also promote entrepreneurship particularly in relation to services sector and the knowledge-based industries such as the information technology and bio-technology sectors, he added.

The professionals are the powerhouse of ideas, solutions, pragmatic approach and suggestions, opined Minister and sought this enormous knowledge pool to be utilised in giving the new piece of legislation the desired orientation.

LLP Law seeks to achieve the fusion of technical and professional expertise coupled with financial risk bearing capacity, said Jitesh Khosla, Joint Secretary, Ministry of Company Affairs, while addressing the gathering.

The intent of the Bill is to unlock the potential intellect of persons working in various fields, said Mr Khosla and expressed that the regime of LLP would provide a platform to the professional firms of Company Secretaries, Chartered Accountants, Advocates, etc to conduct their profession efficiently as well as would be beneficial to venture capital firms, small scale enterprises as well as to the formation of joint ventures.

The introduction of the Bill is to be seen in the context of the regulatory reforms process in the legislations governing the three institutes which had opened the door for formation of multi disciplinary partnerships, Mr Khosla added.

Bill was an effort to take this reform forward and would go beyond professional partnerships to include various firms of business enterprises. For the purpose desired flexibility had been envisaged in the law to allow easy collaborations. He also stated that LLP's would be administered by the existing regime of ROCs, Regional Directors and would utilise the electronic framework of MCA 21.

Complimenting ICSI Mr Khosla said the ICSI could claim a good amount of credit in the framing of this legislation.

Earlier, the newly elected ICSI President Preeti Malhotra in her presidential address said that new business model would prove to be a milestone in providing the professions in the country a fillip to take on the challenges posed by the globalisation of professional services.

It would, infact, help professionals to set up multi disciplinary firms, developing in due course mega firms of Indian professionals, to capitalise on opportunities in WTO environment, Ms Malhotra said.

UNI

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