CII will continue to engage with the Ministry of Corporate Affairs to work out the modalities for various provisions that prescribe delegated legislation in the form of Rules.

NEW DELHI: CII welcomes the passage of the Companies Bill, 2012 in the Rajya Sabha, CII said in a release issued here on August 8, 2013.

“We commend the Government for prioritizing the Bill. It shows the Government’s commitment to usher in the new era of corporate regulation. The Companies Bill as in its present form is a culmination of efforts for over a decade and we are happy that many of CII’s views have been incorporated in the legislation.” said Mr Chandrajit Banerjee, Director General, CII.

“Now that the law is ready, it is time to focus and work on the practical aspects of complying with its provisions. CII will continue to engage with the Ministry of Corporate Affairs to work out the modalities for various provisions that prescribe delegated legislation in the form of Rules. One such vital provision is surely the clause dealing with CSR spend,” he added.

The CII release highlighted that the Companies Bill is commensurate with global standards vis-à-vis disclosure requirements, increased democratic rights for shareholders, self-regulation and accountability. At the same time, it also seeks to restrain the management powers of promoters, who nurture the company during its initial stages and provide the seed capital.

In a country where 75-80% of the businesses are family-run/ promoter-driven, CII hopes that the new law would be able to achieve the fine balancing between ownership and management, which is crucial for success of any enterprise and also fostering the spirit of entrepreneurship, the CII release said.