Govt to iron out implementation glitches in Companies Act

With stakeholders seeking changes in the new Companies Act, the government on Saturday indicated its willingness to review the rules to address the difficulties in implementing them.

Government officials and stakeholders, including the representatives of industry associations, held discussions on various issues related to the new Companies Act, whose many provisions came into force from April 1.

A host of issues including those related to independent directors, financial reporting and auditing, related party transactions and Corporate Social Responsibility (CSR) were discussed.

Among others, industry representatives sought changes in rules pertaining to related party transactions and independent directors.

Industry groups — CII, Ficci, Assocham and PHDCCI — emphasised upon the need to ensure progression and development of business, and avoid unintended negative outcomes.

“The law fortunately delegates considerable power to the government to make rules, through which many of the issues highlighted by the industry can be addressed,” Corporate Affairs Secretary Naved Masood was quoted as saying in the statement issued by CII.