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Revised draft of companies bill unlikely before polls
New Delhi, Oct 22: The Companies (Amendment) Bill 2003 having been withdrawn by the government, the redrafted legislation may not be in place before the Lok Sabha polls scheduled late next year.
New Delhi, Oct 22: The Companies (Amendment) Bill 2003 having been withdrawn by the government, the redrafted legislation may not be in place before the Lok Sabha polls
scheduled late next year.
Official sources said today with the Union Cabinet
finding a host of loopholes in the draft sent to it, it has
become necessary for the Department of Company Affairs to take
a comprehensive review.
"Given the drubbing government has received at the hands of the corporate world, it is unlikely that the revised draft will be circulated before the general elections late next year," they said.
DCA had proposed several changes in the bill, including easing of the provision for independent directors from 50 per cent to two-thirds of the total strength of board of directors and entirely dropping the clause making a woman director mandatory on every company's board after industry associations and corporates raised serious objections to these clauses.
The department is also believed to have inserted the clause capping the number of subsidiaries a company may float and making it mandatory for a group of companies to float only one investment company.
"It was taken up by the Cabinet... They (DCA) were asked to withdraw the bill and come up with a fresh draft bill," Parliamentary Affairs Minister Sushma Swaraj said.
Besides, the draft also proposed to scrap the 75-year retirement age for directors on the boards of companies, sources said here.
The draft bill also proposed clauses on asset sale by companies for restructuring, they added.
Bureau Report
"Given the drubbing government has received at the hands of the corporate world, it is unlikely that the revised draft will be circulated before the general elections late next year," they said.
DCA had proposed several changes in the bill, including easing of the provision for independent directors from 50 per cent to two-thirds of the total strength of board of directors and entirely dropping the clause making a woman director mandatory on every company's board after industry associations and corporates raised serious objections to these clauses.
The department is also believed to have inserted the clause capping the number of subsidiaries a company may float and making it mandatory for a group of companies to float only one investment company.
"It was taken up by the Cabinet... They (DCA) were asked to withdraw the bill and come up with a fresh draft bill," Parliamentary Affairs Minister Sushma Swaraj said.
Besides, the draft also proposed to scrap the 75-year retirement age for directors on the boards of companies, sources said here.
The draft bill also proposed clauses on asset sale by companies for restructuring, they added.
Bureau Report