The Hindu Business Line : No plan to regulate corporate salaries: Gupta

The Minister for Corporate Affairs, Mr Prem Chand Gupta (left), and the CII President, Mr Sunil Mittal, releasing the National Foundation for Corporate Governance (NFCG) Publication ‘Ministry of Corporate Affairs – Transforming business environment’ in the Capital on Monday. —

Our Bureau

New Delhi, July 30 The Minister for Corporate Affairs, Mr Prem Chand Gupta, today indicated that the Ministry does not plan to burden the corporate sector with unnecessary regulations.

Addressing the National Conclave on Corporate Governance in India – ‘Transforming Business Environment,’ organised by the National Foundation for Corporate Governance (NFCG) in partnership with the CII, he reassured that no legislation has been planned to regulate corporate salaries.

On the issue of corporate salaries, in the context of Prime Minister Dr Manmohan Singh’s speech at the CII AGM in May, Mr Gupta said that he was quoted out of context on the issue.

Stating that Dr Singh had saluted the contribution of Indian corporates in putting India on the global map firmly, he said that the appeal was to contain conspicuous consumption.

According to the Minister, the debate in the media was generated because the speech was read in isolation and out of context.

Independent directors

On the issue of independent directors, he said that sheer numbers cannot bring good corporate governance; only the intention, commitment and mindset will make a difference.

Mr Anurag Goel, Secretary, Ministry of Corporate Affairs, said that the legislative drafting of the new company law was almost over.

The Bill is expected to be introduced by the winter session of Parliament.

He added that the industry and the Ministry must work in a public-private partnership (PPP) model.

Referring to the Indian Institute of Corporate Affairs, a recently proposed initiative of the Ministry, Mr Goel said that the institute has been included in the 11th Five-Year Plan at an estimated cost of Rs 211 crore and a Budgetary allocation of Rs 47 crore for 2007-08.

He added that the institute would provide high-quality training on corporate functioning, corporate laws, economics and accounting practices.

A compendium of new initiatives of the Ministry was released by the Minister.

Mr Sunil Mittal, CII President, lauded the recent initiatives of the Ministry, especially MCA21 – the e-governance project of the Government, as it enables greater outreach to SMEs in rural and semi-urban areas.

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