New Delhi: Hailing the passage of the Companies Bill, 2012, India Inc said government should now focus on the practical aspects of complying with its provisions like norms dealing with corporate social responsibility spending.
Parliament Thursday passed the much-awaited Companies Bill which is aimed at protecting the interest of employees and small investors. The government said that it would give impetus to growth and bring transparency.
The Companies Bill, which will replace the nearly 50-year-old Companies Act, was passed by Rajya Sabha by voice vote. Lok Sabha had given its assent in December last year.
"Now that the law is ready, it is time to focus and work on the practical aspects of complying with its provisions. One such vital provision is surely the clause dealing with CSR spend," CII said in a statement.
It said that in a country where 75-80 percent of the businesses are family-run/ promoter-driven, the new law would be able to achieve the fine balancing between ownership and management, which is crucial for success of any enterprise.
Sharing similar views, Ficci said:"We welcomes the passage of the Bill which will give India a comprehensive and contemporary legislation. This legislation is indeed a milestone in the history of company law and will revolutionise the administration and management of businesses in the times to come".
It said the Bill has been through many stages of discussion and has brought in many radical changes to the erstwhile Act.
"Industry hopes that the Working Rules which are expected to be put out in the public domain before notification would provide greater clarity on the operative provisions in the Bill while taking into account legitimate concerns of India Inc," it said.
Ficci said the Bill has introduced numerous changes and concepts which should simplify regulations and bring greater clarity and transparency in managing businesses.
"We are certain and hopeful that the new Companies Act while providing an enabling environment for smooth working and growth of India Inc. Will also address valid concerns of the Industry," it said.
It said that the global environment calls for economic laws and regulations that are effective and efficient, have a reasonable compliance cost and keep Indian businesses competitive.