New Delhi, Aug. 9 (ANI): Institute of Company Secretaries of India (ICSI) President S. N. Ananthasubramanian has hailed the passage of Companies Bill, 2012 passed by the Parliament, and said that the new law promises improved corporate governance norms, enhanced disclosures and transparency, facilitation of responsible entrepreneurship, increased accountability of company managements and auditors, protection of interest of investors particularly small and minority investors, better shareholder democracy, facilitation of corporate social responsibility (CSR) and stricter enforcement processes.
He said the Act is designed to balance the stakeholders' interests, viz, promoters, shareholders and public at large.
Ananthasubramanian said the new Companies law will further accelerate the transformation of Company Secretaries into corporate governance professionals by recognizing them as Key Managerial Persons in a company along with the Chief Executive Officer / Managing Director / Manager, Whole-Time Director and Chief Financial Officer.
The Company Secretary is expected to become the Chief Governance Officer of the Company and lead the governance initiatives.
Further, it envisages a much larger role for Company Secretaries in areas of secretarial audit, restructuring, liquidation, valuation and much more, the Institute has said.
The Parliament yesterday passed the historic Companies Bill 2012, moved by Corporate Affairs Minister Sachin Pilot.
The Bill was passed by the Rajya Sabha yesterday which had already been passed by the Lok Sabha in December 2012.
Pilot has termed it as a historic day for the country as it will usher in a new era in the Corporate Governance.
The new Companies Bill, on its enactment, will allow the country to have a modern legislation for growth and regulation of corporate sector in India. T
The existing statute for regulation of companies in the country, viz. the Companies Act, 1956 had been under consideration for quite long for comprehensive revision in view of the changing economic and commercial environment nationally as well as internationally.
The new law will facilitate business-friendly corporate regulation, improve corporate governance norms, enhance accountability on the part of corporates/ auditors, raise levels of transparency and protect interests of investors, particularly small investors.
The salient features of the new Companies law are: Business friendly corporate Regulation/ pro-business initiatives; e-Governance Initiatives; Good Corporate Governance and CSR; Enhanced Disclosure norms; Enhanced accountability of Management; Stricter enforcement; Audit accountability; Protection for minority shareholders; Investor protection and activism; Better framework for insolvency regulation; and Institutional structure. (ANI)