The Telegraph
Since 1st March, 1999
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Companies Act heads for more changes

New Delhi, June 22: The Department of Company Affairs (DCA) is charting out fresh changes in the Companies Act that would clear the way for self-compliance in matters related to penalties, valuation of shares and assets, and limited liability partnership. The Companies (Amendment) Bill 2003, supposed to replace the Companies Act, has already been tabled in Parliament.

These provisions will be made more flexible to foster self-compliance, said DCA officials.

The department had formed a number of committees and expert groups, including the Naresh Chandra Committee-II, to further study various aspects of the Companies Act, including provisions related to penalties, valuation of shares and assets of the firm and limited liability partnership.

It is learnt that taking a view that further liberalisation in the Companies Act is required, Naresh Chandra Committee is likely to suggest measures to ensure that the law provides for self compliance so that the companies need not approach the DCA for various routine approvals.

Flexibility in compliance is likely to be worked out by incorporating expert suggestions. provisions relating to penalties in the Companies Act is set to be made more rational and tightened where necessary.

DCA is also considering proposals relating to transfer of shares in private limited firms. It has requested the state governments to amend the regulation regarding Stamp Act to facilitate online registration of companies.

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