NEW DELHI: The Companies Bill, which seeks to replace the more than five-decade old norms for corporates, is scheduled to be presented today in the Rajya Sabha.
Corporate Affairs Minister Sachin Pilot will present the Bill that would consolidate and amend the law relating to companies, as per the Revised List of Business for Rajya Sabha tomorrow.
The Companies Bill 2012 envisages a slew of changes to rules governing the functioning as well as social responsibilities of corporates. The legislation was passed by the Lok Sabha in December, 2012.
The proposed legislation is expected to be cleared without much hurdles in the Upper House, especially since most of the parties are on board, according to experts.
Once in place, the new legislation would replace the Companies Act, 1956.
Spending towards Corporate Social Responsibility (CSR) activities, more responsibility on independent directors and setting up of National Financial Reporting Authority (NFRA), are among the major features of the proposed legislation.
With the new legislation, India would possibly become the first country to have CSR spending through a statutory provision.
Companies have to shell out two per cent of their three-year average profit towards CSR activities and in case they are unable to spend the money, they have to provide explanations.
A panel is already working on making rules related to implementation of the new bill.