The Hindu : Panel to simplify Companies Act

Online edition of India's National Newspaper
Wednesday, Jan 15, 2003

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Panel to simplify Companies Act

By Our Special Correspondent

NEW DELHI JAN. 14. The Government has set up another committee under the chairmanship of Naresh Chandra, former Indian Ambassador to the United States, to work out simplifications in the Companies Act and Indian Partnership Act so as to facilitate easy compliance, especially by small and private limited companies. Mr. Chandra had headed another committee which recently submitted its report on corporate governance.

According to an official note, the new committee has been set up make recommendations towards creating a ``structural environment which is conducive to the growth and prosperity of corporates, and, at the same time is effective in regulating their activities in a manner that minimises and deters exploitation by unscrupulous elements. Smaller entities with few stake-holders should not be bogged down in unnecessary and meaningless paper work. There is also need to simplify and rationalise entry and exit procedures (especially for non-functional companies).''

The committee, comprising legal and company law experts, has been asked to submit its recommendations regarding small and private limited companies to the Ministry of Finance and Company Affairs within 45 days of its first meeting.

The committee has also been asked to complete its work on all other issues within 90 days.

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