Cos Bill will bring in more efficiency, transparency: Pilot
Kochi, Feb 8 (PTI) Minister of State for Corporate Affairs Sachin Pilot today said the New Companies Bill would bring in the much needed efficiency and transparency in business affairs.
"The new bill, while making CSR compulsory, will prevent frauds long before they happen. The present Companies Act was framed in 1956, which in many ways was not serving its purpose and the previous one was enacted way back in 1919," he said.
Pilot was speaking at the valedictory function of Kerala Management Association''s 32nd Annual Convention.
On CSR being made compulsory, he said India is among the first nations to make legislations on the issue, the others being Brazil, France and Indonesia. "Still, ours is the most specific one on the issue," he said.
With the new legislation, profit making private sector companies would be asked to spend a minimum of two per cent of their profits on CSR activities,he said,adding that government would not be specific on what was to be done, but post the activities, disclosures would be made compulsory.
In a lighter vein, Pilot said market shares and such things are relevant to members of political parties like him as well. Credibility for those who work in the public domain is more important than that of the private sector.
India which ranks among investor-friendly nations has lately been on the bottom. "But with concerted efforts, we could bounce back," he said. In a decade or two, India will be a younger country with a more promising future, Pilot said.
S R Nair, KMA President, presided over the function, which was also addressed by All India Management Association President, B Shivakumar, Federal Bank MD and CEO Shyam Sreenivasan, among others.
The stage is set for a fresh round of argument on the highly publicised Lokpal bill in Parliament. The Samajwadi Party has made it clear that it would oppose the Bill in the Rajya Sabha.
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