| |
On the liquidation process for companies, he said
there were cases that were pending since pre-independence
days.
Calling for expediting the cases, he said there were
nearly 53 cases pending in various courts. The ministry
was keen on resolving them but most of them depended
on the court. The issue for shortening the process
had been taken up.
The Ministry was also keen on simplifying the exit
rules for companies, Gupta said adding, there were
nearly 6,75,000 companies registered, out of which
35 to 40 per cent had not filed their papers and even
their existence was doubtful.
"We want to simplify the procedures for such
companies who wish to exit," Gupta said. The
companies that had not done business for three years
could have their names struck off after filing their
statement of account and other dues.
He said there were three crore cases pending in different
courts, out of which 50,000 were of minor technical
violations. The ministry was considering resolving
them by imposition of some penalty
Gupta hoped that the new Companies Bill, that envisaged
simplification of procedures and regulations making
things understandable and implementable, would be
passed by next year.
On the issue of the percentage of independent directors
on a company's board, Gupta said the issue must be
seen in the context of the Indian corporate sector
and not on the Western model. There were varying suggestions
from different business organisations on the issue,
he said.
On corporate governance, Gupta said business leaders
must evolve modalities to involve the 'have-nots'
as well because if prosperity did not trickle down
and regional imbalance continued, the environment
would become conducive for growth of extremism.
"We must not follow the Western model blindly
because the US economy is different from the Indian
economy. Unlike the West, nearly 90 per cent of enterprises
were family-owned", he said, adding, it was not
enough to introduce rules and regulations for corporate
governances.
There was need to ensure that the machinery and regulations
were in line with the best practices in the world
and implemented well
|
|
