Parliament passed the Companies Amendment Bill-2017

Parliament has passed the Companies (Amendment) Bill, 2017 with the Rajya Sabha adopting it on Tuesday. The Lok Sabha had passed it earlier in the monsoon session.

The bill seeks to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve ease of doing business.

Replying to issues raised by the members during a discussion on the bill in the Rajya Sabha, Minister of State for Corporate Affairs P P Chaudhary said the amendment would ensure better corporate governance and improve the ease of doing business in the country.

The minister dismissed the apprehensions raised by members that the government was not doing enough to ensure that companies comply with the Corporate Social Responsibility, CSR, provisions. The minister said the government has already issued notices to many companies for not complying with CSR provisions under the Companies Act. On the government’s promptness in taking action against companies at fault, Mr Chaudhary said the government has taken several step against such firms which were not taken in last several years.

He said the government has taken action against over two lakh shell companies and Special Fraud Investigation Office was looking into it.