The Hindu Business Line : `New Company Law will protect small investors'

The Minister for Company Affairs, Mr P.C. Gupta, releasing a book on `Corporate Social Responsibility: Concepts & Cases-The Indian Experience' along with Dr Maxine Olson, UN Resident Coordinator & UNDP Resident Representative, in the Capital on Saturday.— Kamal Narang

New Delhi , Sept. 3

THE Minister for Company Affairs, Mr Prem Chand Gupta, said on Saturday that the new Company Law would provide stricter norms against those companies that have siphoned off funds collected from the public.

The law would have provisions for post-deposit or post-IPO investigations of defaulting companies to protect small investors, he said.

Mr Gupta was speaking to presspersons at the sidelines of a seminar on corporate social responsibility jointly organised by the Confederation of Indian Industry (CII), United Nations Development Programme (UNDP), All India Council for Technical Education (AICTE) and the Management Development Institute (MDI).

The Minister said, "We will ensure that depositors are not defrauded and that incidents like Morepen Labs do not recur."

He added, "Corporate social responsibility has come a long way from the time when companies merely gave donations to charity to the present times when several companies have fully integrated social goals with their business goals."

Larger organisations have a lot of scope for corporate social action, since they have the resources. Mr Gupta urged India Inc to develop a definite agenda for corporate social action.

"It needs to be understood that corporate social responsibility is not incompatible with profits and growth," he stated.

Educational institutions, the corporate sector, the social sector and the Government are working together on integrating corporate social responsibility with the curriculum of business schools and the strategies of corporates.

To this end, the UNDP-CII-AICTE-MDI jointly released a publication titled `Corporate Social Responsibility: Concepts & Cases: The Indian Experience.'

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