You are here
Home > All Newspaper Editorials UPSC IAS > The Indian Express Editorials > Companies Bill passed by Parliament

Companies Bill passed by Parliament

Wrapping up debate, Sachin Pilot termed passage of legislation a ‘historic feat’. (AP)

Parliament today passed the much-awaited Companies Bill which is aimed at protecting the interest of employees and small investors, with the government saying the “historic” measure will give impetus to growth and bring transparency.

The Companies Bill, which will replace the nearly 50-year-old Companies Act, was passed by Rajya Sabha by voice vote.

Lok Sabha had given its assent in December last year.

Related: Sebi to align pvt placement norms with Companies Bill

Wrapping up the debate, Corporate Affairs Minister Sachin Pilot termed the passage of the legislation a “historic feat”.

“The passage of the Bill will give impetus to the growth momentum,” Pilot said, wrapping up the debate, adding, “The focus of the bill is to enhance transparency and ensure fewer regulations, self reporting and disclosure…It will outline the positivity in the economy”.

Related: Govt to align FDI rules with Companies Bill

The new law requires companies that meet certain set of criteria, to spend at least two per cent of their average profits in the last three years towards Corporate Social Responsibility (CSR) activities.

Related: Companies Bill – Class action suit: Big measures for small investors

Pilot said the government accepted about 96 per cent of the suggestions of the Standing Committee and will seek views of stakeholders before finalising rules for the legislation, which is compliant with “latest technologies”.

The new law also makes its mandatory for companies that one-third of their board comprises independent directors to ensure transparency. Also, at least one of the board members should be a woman.

It will also encourage companies to undertake social welfare voluntarily instead of imposing the same.

The legislation has provisions for “faster winding up” of firms and has also defined the word ‘fraud’, Pilot said.

… contd.

Please read our terms of use before posting comments

TERMS OF USE: The views expressed in comments published on are those of the comment writer’s alone. They do not represent the views or opinions of The Indian Express Group or its staff. Comments are automatically posted live; however, reserves the right to take it down at any time. We also reserve the right not to publish comments that are abusive, obscene, inflammatory, derogatory or defamatory.

error: Content is protected !!