M Veerappa Moily hopes new Companies Bill to be passed shortly

MUMBAI: Union Minister for Corporate Affairs M Veerappa Moily today expressed the hope that the much-awaited new Companies Bill, which seeks to replace the Companies Act 1956, will be passed in the current session of Parliament.

"We would like to see the new companies bill to be passed in the current session of Parliament," Moily said addressing the ICSI Capital Markets conference here.

The new Companies Bill, which will replace the Companies Act 1956, also seeks to give a fillip to the cause of corporate social responsibility ( CSR) and corporate governance.

Besides, the bill will make it mandatory for firms to maintain their documents in electronic format. It also introduces the concept of e-governance, makes provision for encouraging ethical corporate behaviour and rewards employees for their integrity.

On initiative towards creating awareness among investors and promoting good governance in capital market, Moily said, "We are having series of discussions in five metropolitan cities on investments and governance. We are going to prepare a road map as to how the investment could be boosted up, what are the hurdles and how to make business easy in this country".

On the National Corporate Governance policy, Moily said,"the draft policy is already on its way. The draft is expected to be submitted within six months period.