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Strengthening of Corporate Governance in Companies

by India CSR Network
7 years ago
in More

IndiaCSR News Network

NEW DELHI: The Companies Act, 2013 which replaces Companies Act, 1956 incorporates various provisions aimed at strengthening of corporate governance in companies in India, many of which are based on recommendations of various committees. Twenty four sets of rules under the Companies Act 2013, finalized after extensive consultations with stakeholders have also been notified.

These provisions include, inter-alia, enhanced responsibilities for Board and its committees like the Audit Committee and Nomination and Remuneration Committee, enhanced disclosures to stakeholders, appointment of Independent Directors, stricter norms for ensuring independence and accountability of auditors, greater level of investor protection.

Corporate GovernanceThe first year of implementation of the commenced provisions has been completed on 31.3.2015. Statutory annual filings which will substantially report on the requirements laid down in the new provisions are not yet due. The Registrar of Companies, within their respective jurisdictions, are the authorities entrusted under the Act to initiate action in case of violation of any provision of the Act.

This information was given by Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

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