Social welfare spending might have been the most discussed topic in the new companies legislation but the maximum public comments, at more than 10,000, have come for draft rules related to auditors.

The new Companies Act, replacing the nearly six-decade old legislation that governs functioning of corporates, is in the process of being implemented by the Corporate Affairs Ministry.

Overall, the draft rules issued by the government for 29 chapters of the new Act has received about 26,000 comments.

Out of them, the maximum number of comments have been received on draft norms related to ‘auditors’, with the count at 10,903, according to official data.

Draft rules for Corporate Social Responsibility (CSR), in simpler terms social welfare spending, elicited 1,772 comments.

In a first of its kind, the new legislation requires certain class of companies to shell out two per cent of their three-year average annual profit towards CSR activities. In case, the eligible entities are unable to spend the required amount, reasons for the same have to be provided to the Ministry.

Going by official data, the second most commented topic is ’director’ with responses touching 5,992, followed by ’independent director’ at 2,619 comments. Among others, the topic of ‘investor’ has elicited 2,013 comments.

In terms of respondents, the maximum responses have come from the category ‘General Public’ at more than 8,800 comments.

So far, the government has issued draft rules in four tranches and the deadline for the last two phases, covering four chapters, ends tomorrow.

For the first tranche, that covered 16 chapters, a staggering 20,553 comments were received. It covered chapters on Audit and Auditors, CSR, Appointment and Qualification of Directors, Meetings of Board and its Powers, Prevention of Oppression and Mismanagement, Companies Incorporated Outside India and Account of Companies, among others.

Meanwhile, the second tranche of draft rules - that covered nine chapters - has elicited 5,218 comments. They included Management and Administration, Share Capital and Debentures, Appointment and Remuneration of Managerial Personnel and Registered Valuers.

An official said that some of the comments are repeat ones. The overall tally of comments also includes comments received on draft forms for various chapters.

The new legislation, that replaces Companies Act, 1956, was approved by the Parliament in August this year. The new law has been in the works for a long time.

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