New companies bill set for budget session: Khursheed

New Delhi, July 4 : The new Companies Bill 2009, with stricter disclosure norms and provision for one-person corporate entity, will be tabled in the ongoing budget session of parliament, Corporate Affairs Minister Salman Khursheed said Saturday.

'We will table the new bill this session itself,' said Khursheed on the margins of a conference organised by the Confederation of Indian Industry (CII) here.

A new companies bill is being re-introduced as the earlier version had lapsed because of dissolution of the previous Lok Sabha. Khursheed said the provisions in the proposed law would be in accordance with the changing economy.

The government hopes that provisions in the new bill will afford greater protection to shareholders, make disclosure norms stricter in the wake of the Satyam Computer Services scam, allow formation of one-person company and help India Inc compete more effectively globally.

At the moment, two people are required to form a private limited company and seven for constituting a public limited company.

'The attempt is to make it as unambiguous and explicit as possible,' said Khursheed.

The government, he said, was also looking at pending corporate cases in courts and would devise a mechanism for speedier dispensation of justice.

'There is a need to expedite judicial verdict. We are trying to address that in the new bill,' said Khursheed who also oversees the minority affairs ministry.

The minister also called for lesser government intervention in the private sector and said decisions like capping executive pay was the democratic right of shareholders.

'I think there has been too much governmental interference in the past. Let the shareholders decide what they want to do,' said Khursheed.

--IANS