The Standing Committee on Finance, headed by Mr Yashwant Sinha, is hopeful of submitting its report on the Companies Bill 2011 during the second leg of the Budget session beginning on April 24.

On Friday, the Parliamentary Panel held discussions on the Companies Bill besides seeking clarifications from senior Government officials.

India has been looking to enact a new company law for more than a decade now.

The Companies Bill 2011 was referred by the Government to the Standing Committee on Finance only after the main Opposition party, BJP, insisted on it.

This Bill was introduced in Lok Sabha in mid-December and referred to the Committee in the first week of January.

It is learnt that the Government has now indicated its willingness to the Standing Committee to make changes in the Bill through amendments.

“We have got some suggestions from the Government. The Committee will study it before finalising our report,” Mr Sinha, who heads the panel, told Business Line here.

At Friday's meeting, members of the panel discussed the need for the proposed legislation to focus on investor protection, which was seen as a weak link in the existing law.

It was also pointed out that large corporates in the current globalised environment were able to wield their influence on the Government and minority shareholders often bore the brunt of such actions.

It was also felt that proper oversight was needed on the functioning of auditors, as they play a key role in providing comfort to investors about the true and fair value of financial statements of corporates.

>jigeesh.am@thehindu.co.in

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