By Leith Robotham
Director of Philanthropy, Give2Asia
Over the past several years, India has been updating its corporate law and legal framework to increase transparency, accountability, and align with international business standards. The primary focus of these efforts has been the revision of the Companies Act of 1956.
On December 18, 2012, the Lok Sabha (India’s lower house of parliament) approved the Companies Bill, which, when finally approved, will replace the Companies Act of 1956. Currently, the Companies Bill awaits approval by the Rajya Sabha (India’s upper house of parliament) and will thereafter likely receive assent by the President of India.
The Bill, as approved by the Lok Sabha, consists of 470 sections and contains new provisions dealing with insider trading, independent directors, class actions, a one person company, “sick” companies, fraud, officers in default, and mandatory corporate social responsibility (“CSR”).Continue Reading