In a bid to make the Companies Bill more lean and flexible, it will be stripped of all detail, which may be separately inserted under the heading – Rules.
The bulk of the Bill is being taken to the Rules, to enable quick amendments through notifications without going to Parliament.
“The procedures will be in the rule as always,” said an official of the Ministry of Corporate Affairs.
“Any amendment in the Act, i.e. law, is a complicated task as it requires Parliamentary approval, whereas Rules can be amended by the Government at any time through official notifications. Hence, it was preferred to avoid giving details in the Act,” said Mr Pavan Kumar Vijay, Managing Director of Delhi-based consultancy, Corporate Professionals.
While industry welcomed the move, they cautioned against pushing through of misplaced legislation, especially the medium and small and micro enterprises (MSMEs).
“The Government will have the flexibility to listen to different associations from time to time but there is a danger of it becoming a victim in the hands of big companies. For small companies whose lobbies are too small to be heard, it does not provide a level playing field,” said Mr Dinesh Agarwal, Founder and Chief Executive Officer, Indiamart.com.
No comments:
Post a Comment