Government looking to strengthen corporate governance

New Delhi, July 24 (IANS) The new amendments to the Companies Act, 2013 incorporate various provisions aimed at strengthening of corporate governance in Indian companies, parliament was told on Friday.

“These provisions include, inter-alia, enhanced responsibilities for the board and its committees like the audit committee and nomination and remuneration committee, enhanced disclosures to stakeholders, appointment of independent directors, stricter norms for ensuring independence and accountability of auditors and greater level of investor protection,” Corporate Affairs Minister Arun Jaitley told the Lok Sabha in a written reply.

“The Indian Accounting Standards (Ind AS) have also been notified in February 2015, and are expected to contribute to improved corporate governance. The number of activities under corporate social responsibility has also been expanded,” he added.

The minister also said that the act has been amended to do away with mandatory requirement of minimum paid up capital for companies, common seal for companies and the requirement of filing declaration of commencement of business with a view to facilitate doing business using company as a vehicle.

“Incorporation process for a company has been simplified through the introduction of an integrated e-form INC-29, amongst other steps,” he said.

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