The Hindu Business Line : New company law Bill likely to be tabled in monsoon session: ICSI

Mr Mahesh Anant Athavale (left), President of the Institute of Company Secretaries of India (ICSI), and Mr Datla Hanumanta Raju, Council Member of ICSI, receiving the Chief Minister, Dr Y.S. Rajasekhara Reddy at the inaugural session of the national seminar on `Liabilities of Directors under Corporate Laws' in Hyderabad on Wednesday. - A. Roy Chowdhury

Hyderabad , Dec. 22

HAVING submitted its detailed feedback on the proposed revamping of the Company Law, the Institute of Company Secretaries of India (ICSI) expects the new Company Law Bill to be introduced in Parliament during 2005 monsoon session, according to the ICSI President, Mr Mahesh Anant Athavale.

Talking to newspersons on the sidelines of a national seminar on `Liabilities of directors under corporate laws', organised by the Hyderabad Chapter of ICSI here on Wednesday, he said the new Company Law proposes to rationalise the number of sections to 350 from 658. Following the feedback submitted by the ICSI, the Ministry of Company Affairs has appointed an expert committee under the Chairmanship of Mr J.J. Irani of the Tata Group.

The draft for new Company Law was originally prepared six months ago and widely circulated for public debate. Apart from the professional institutes such as company secretaries, chartered accountants and cost and works accountants, various chambers of commerce have also submitted their comments on the proposed `user-friendly' law, Mr Athavale said.

Admitting that there were certain differences and debates on the issues such as number of independent directors on the boards, he said the corporate houses opposed the proposal to have majority number of independent directors.

With this proviso removed from the proposed law, there should be no more serious objections, he said.

To ensure that the company secretaries act independently, the ICSI had suggested their appointment and removal should be by the board of directors and shareholders.

It should be mandatory for all listed companies to adhere to the secretarial standards prescribed by the ICSI, which would ensure good corporate governance, he said. Mr Athavale suggested the Government to utilise the services of company secretaries in both labour and cooperative sectors. While they could issue annual compliance certificates to companies on labour issues, they could help in managing cooperative societies efficiently.

The Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, who inaugurated the national seminar of ICSI, advised the company secretaries to perform their duties independently and to protect the interests of retail and common investors and guard them from the vested interests of promoters.

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