What happened to the New Companies Act that was scheduled to be introduced in the Budget session of Parliament by Union Minister for Corporate Affairs Prem Chand Gupta?
Well, the Bill is being given “final touches” by the ministry and is likely to be introduced in the monsoon session of Parliament. The new Act, which will replace the existing Companies Act, 1956, will bring about wide-ranging changes, starting from the way companies are registered. It will also ensure better disclosures, penalise non-compliance with stiff penalties, stimulate entrepreneurship by permitting, among other things, one-person companies and empower small shareholders by allowing class action suits. All these provisions are part of the recommendations made by the Expert Committee on Company Law, also called the Irani Committee, which was chaired by Jamshed J. Irani, Director, Tata Sons, in 2005.
— Manu Kaushik