Centre gives clearance to Companies Bill 2008

New Delhi, Aug 29 : The Union Cabinet on Friday approved the introduction of a new Companies Bill in Parliament to incorporate far-reaching changes, including scrapping the minimum paid-up capital requirement and setting up special courts to try offences.

The new bill, which is to replace the existing Companies Act, 1956, would be introduced in the coming session of the Parliament in October. The Companies Bill 2008 mandates 33 per cent independent directors on the board of a company, which will have to follow SEBI norms if it gets listed.

It will also allow a single person to set up a company and the restriction on the number of partners will be done away with.

Briefing reporters after a Union Cabinet meeting here today, Science and Technology Minister Kapil Sibal said the new bill proposes to bar issuance of shares at a discount to owners of the company.

ANI