The Hindu Business Line : `Law tribunal will provide more scope for co secys'

Mr. Mahesh Anant Athavale, President of the Institute of Company Secretaries of India, and Mr P. Jagannathan, Chairman of the Hyderabad chapter, at a meet in Hyderabad on Friday. — A. Roy Chowdhury

Hyderabad , April 9

THE Institute of Company Secretaries of India (ICSI) hopes that the proposed National Company Law Tribunal (NCLT), expected to replace the Board for Industrial and Financial Reconstruction (BIFR), would open up opportunities for the profession of company secretaries to provide value-added diversified services to the industry.

"Apart from expediting the process of winding up of companies and enabling early revival of sick industrial units, the NCLT would also provide major opportunities for the profession of company secretaries," the ICSI President, Mr Mahesh Anant Athavale, told newspersons on Friday.

According to him, there were certain legal hurdles before the NCLT which would be cleared in the near future. It would also lead to the concept of private liquidators, which in turn would further boost the profession.

Compared to the lengthy process of liquidation through the official liquidator route, the appointment of private liquidators by the NCLT would expedite the process and benefit the stakeholders of the industrial units under liquidation.

Further, since the remuneration of the private liquidators is linked to the percentage of realisation of liquidation of assets, it would lead to greater professionalisation of the liquidation process, Mr Athavale said.

Since international co-operation between all the company secretary institutes is vital in the globalisation era, ICSI has initiated steps to float an International Federation of Company Secretary Institutes (IFCSI) for developing and promoting the profession of company secretaries globally.

The Institute is planning to come out with country-specific short-term courses for its members. These courses would enable the ICSI members to take up practice in several countries, Mr Athavale said.

Mr Athavale also said that the institute expects to offer excellent training services to directors of companies on corporate governance. (The SEBI has insisted upon compulsory training of directors on corporate governance.)