New Delhi, Jan. 3: Heralding a further whiff of fresh air into the country’s economic reforms, the company law board stands abolished with the President giving his assent to the Companies (Amendment) Act, 2002.
The Act seeks to amend the Companies Act, 1956, providing for a new insolvency law for rehabilitation and winding up of sick units within a time frame of a maximum of two years as against the existing system taking about 18-26 years.
Further, every corporate will have to contribute 0.06 per cent of its annual turnover towards a corpus fund for rehabilitation of the workers of the sick units.
The new company law will pave the way for setting up a National Company Law Tribunal with branches across the nation. The branches will be notified by the government at a later stage.
The tribunal will take over the jurisdiction of high courts in matters of liquidation of sick units. It will repeal the Sick Industries (Special Provisions) Act.
President A.P.J. Abdul Kalam gave assent to four Bills passed by Parliament in its last session, including the rape law amendment — an amendment to the Indian Evidence Act. Under the new provision, the counsel cross-examining a rape victim can no longer pose questions on her “moral character”.
The Cable Television Network (Amendment) Act, 2003 and the Transfer of Property (Amendment) Act, 2003, are two other major laws that received the President’s nod.