The Hindu Business Line : `Govt waiting for RoCs' report on Anil Ambani's complaints'

The Minister for Company Affairs, Mr P.C. Gupta, addressing a conference on `Corporate governance: The changing landscape' in the Capital on Wednesday. — Ramesh Sharma

New Delhi , June 22

THE Government on Wednesday said it was yet to receive reports with regards to complaints of violation of corporate governance issues in the Reliance group. The complaints had been filed by Mr Anil Ambani.

Mr Anil Ambani reached a settlement with his elder brother, Mr Mukesh, last week on the ownership issues of the Reliance empire.

Speaking to newspersons on the sidelines of a seminar on `Corporate governance,' organised by the Associated Chambers of Commerce and Industry, the Company Affairs Minister, Mr Prem Chand Gupta, said that his Ministry had asked for "certain information" from the Registrar of Companies (RoC) at Mumbai and Ahmedabad and would decide on the future course of action once it received a report in this regard.

Asked on the time-frame by which the Government expected the report, he said, "I don't think we have to push for that report." He added that this matter was separate from the settlement process.

Celebrities on company boards serve little purpose

Speaking at the seminar, Mr Gupta brushed aside apprehensions that the availability of the independent directors is a big question for corporates and said that the induction of celebrities in the board of companies has served no fruitful purpose and only lent a name to such boards to mislead the gullible investors.

"The Government is examining the views expressed in the J.J. Irani Committee report as also the stand of SEBI as regards to the number of independent directors in the corporates boards and would shortly give its position on the issue," he said.

The Minister also said that the new company law would be extremely simple and devoid of complexities of regulations to help corporates to survive the onslaught of emerging competition.

Mr Gupta also said that the simplified law would be stiff enough to impose heavy penalties on corporates that violate the established norms of corporate governance and commit intended acts of omission and commission.

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