Govt introduces new Companies Bill in Lok Sabha

Govt introduces new Companies Bill in Lok Sabha

New Delhi: Government on Thursday introduced a new Companies Bill, 2008, in the Lok Sabha that makes it easy for a company from the stage of incorporation to winding up by doing away with host of obsolete provisions.

Companies Bill, 2008, once approved by Parliament, will replace the existing Companies Act, which was enacted in 1956.

The bill was introduced by Minister of Corporate Affairs Prem Chand Gupta in the Lower House amid objections raised by CPI (M) member Varkala Radhakrishnan.

Objecting to the introduction of bill by the minister, Radhakrishnan said that a 250-odd page bill is almost like an encyclopedia and should have been given to MPs at least two days in advance.

“It (bill) was given to us only this morning...Is this the way legislative business should be conducted by the government?," he questioned.

The bill, according to the statement of objects and reasons, will provide for “basic principles for all aspects of internal governance of corporate entities and a framework for their regulations."