UPA's report card for 2004-07 on Ministry of Corporate Affairs

New Delhi, May 27 (UNI) The Ministry of Corporate Affairs, which was earlier named as the Ministry of Company Affairs, is targeting to introduce a revised new comprehensive Companies Act Bill in Parliament during 2007-08.

According to official sources, this proposed new bill has the provision of providing a legal frame that is easy to understand and implement and responsive to dynamic changes in the international business scenario.

In order to ensure a suitable regulatory regime for competition, the Ministry has introduced a bill in Parliament to amend the Competition Commission Act, so that issues that had prevented the Competition Commission of India from becoming fully operational on a sustainable basis get resolved. The Commission will function not only as a market regulator for preventing anti-competitive practices, but will also serve as an expert body having advisory and advocacy functions.

During this year, the Government aims to complete the process of enactment of amendments to the Competition Act, 2002, select the chairperson and members of the Competition Commission of India and the Competition Appellate Tribunal, appoint the staff for the Commission and Tribunal, and provide for infrastructure and amenities for the Tribunal.

The interface of industry with regulatory bodies like taxation authorities and registration authorities is being made transparent, simple and hassle free through initiatives like the MCA-21 and income tax computerisation e-governance projects under the National e-Governance Plan.

The offices of Registrars of Companies (RoCs) have been restructured. Under MCA-21, all registration related functions of the Registrar of Companies have been transformed successfully into e-governance mode, with 80 per cent documents now being filed by companies and professionals from their offices or homes.

In order to provide greater freedom with accountability in the professions of chartered accountants, company secretaries and costs and works accountants, the related statutes have been amended. New Indian Accounting Standards, incorporating international best practices have been developed and notified.

A bill to provide Limited Liability Partnerships (LLPs) has been introduced in Parliament to provide for a new form of business organisation, combining the limited liability aspect of companies with the high degree of flexibility in internal management available in partnerships. This structure is expected to significantly benefit small enterprises and professionals engaged in providing various services, and also encourage venture capital investments.

The National Foundation for Corporate Governance has been set up in association with industry and professional associations to serve as a platform for deliberations on issues related to corporate governance, with the focus being on adoption and implementation of a country strategy with active involvement and participation of all stakeholders, dissemination of good corporate governance practices to small and medium enterprises and creating an interface on corporate social responsibility.

The Government proposes to establish an Indian Institute of Corporate Affairs to provide policy research and knowledge support, the sources added.

UNI