The Hindu Business Line : `RoCs must act as facilitators of corporate sector'

THE Company Affairs Minister, Mr Prem Chand Gupta, has asked the Registrar of Companies (RoCs) to take on the role of facilitators rather than be the regulators of the corporate sector.

Inaugurating a workshop on `Simplification of procedural aspects under the Companies Act, 1956', organised by the Institute of Chartered Accountants of India here, Mr Gupta expressed confidence that RoCs would get more efficient once the e-governance project of the Ministry of Company Affairs is completed by the middle of next year.

He said company formation and return filing can all be done quickly from the confines of office premises or homes once the project is completed.

"While the process of e-governance project is on, we must ensure in our RoC offices that the visitors' problems are solved by RoCs as facilitators and not as regulators," he said.

Mr Gupta underscored the need for a simple company law to achieve and sustain growth. "In the changed global scenario, large multinationals are looking to establish presence here to expand business. Our corporate sector has been looking to acquire companies abroad. To achieve and sustain growth, we need to have a simplified company law that could be easily implemented."

The Minister said that the cost of implementation should be much lesser than the cost of non-compliance. "Cost of compliance today is more than the cost of non-compliance. That's why we face all problems. If the cost of compliance is cheaper than the cost of non-compliance, I am sure that 90 per cent of problems would be solved."

On the Simplified Exit Scheme 2005 (SES), Mr Gupta made it clear that the scheme would not be extended beyond the specified deadline of July 31.

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