The Hindu Business Line : JJ Irani panel on company law — Industry urges Govt to expand terms of reference

CORPORATE India on Saturday urged the Government to expand the terms of reference of the expert committee headed by the Tata Sons Director, Dr J.J. Irani, which is to prepare a model company law.

The Company Affairs Minister, Mr Prem Chand Gupta, had recently announced the setting up of this expert committee comprising of representatives from industry associations and professional institutes.

The committee has been directed to prepare a model company law after examining the responses of various stakeholders on the concept paper that was released by the Ministry of Company Affairs in August this year.

"Our suggestion is that the Dr J.J. Irani Committee should also be given the task of studying the SEBI Act and the Securities Contracts Act and the rules under these legislations before they firm up their views on final paper on the Companies Act. This is a must if procedures and rules under these legislations are to get harmonised," Mr Keshub Mahindra, Chairman, Mahindra & Mahindra, told Business Line after attending the meeting of Prime Minister's Council on Trade and Industry here today.

Mr Mahindra said that the Government should look at SEBI-related legislations, regulations and procedures as they go about taking measures to change the Companies Act, 1956.

"We are keen that the Government should harmonise procedures under the Companies Act and SEBI Act," he said.

Both Mr Mahindra and the Infosys Chief Mentor, Mr Narayana Murthy, held that economic legislations and procedures should be "totally transparent, simple and not left to personal interpretations."

Mr Narayana Murthy also stressed that the Government should focus essentially on new jobs for wealth creation in the economy and not look at policies for re-distribution of wealth. "Every person should get an opportunity to become wealthier," he said while stressing on skill upgradation of the Indian workforce and the necessity for initiating steps in that direction.