Press Release of Conference on Companies Bill 2013 to be inaugurated by Justice Mohit Shah by IMC

In Good Company with the new Companies Bill 2013

IMC organizes Conference on Companies Bill 2013 to understand important issues arising out of the various provisions made in the Bill affecting the Corporate Sector

Online PR News – 29-August-2013 – Mumbai – In Good Company with the new Companies Bill 2013

IMC organizes Conference on Companies Bill 2013 to understand important issues arising out of the various provisions made in the Bill affecting the Corporate Sector

Mumbai, 28 August, 2013: A relic of an era gone by, the Companies Bill 1956 is symbolic of times when most of our contemporary visionary corporate leaders were either toddlers or some not even born. Though amended 25 times, the law is not in sync with the new order in the corporate world. This old bill is all set to be replaced with the new Companies Bill 2013. In a bid to fully comprehend the implications, Indian Merchants’ Chamber under the auspices of its Law Committee is organizing a one day Conference on Companies Bill 2013, on August 31, 2013, at Hotel ITC Grand Central, Parel, Mumbai. The conference will be inaugurated by the Hon’ble Chief Justice of Bombay High Court Mr. Justice Mohit Shah.

The law has been rewritten extensively with several new provisions for investor protection, better corporate governance and corporate social responsibility among others. It defines 33 new terms that have come into vogue in recent times. As with all things new, there is a certain element of curiosity and the need to understand this bill in its new avatar, implications, effects and entirety.

Eminent speakers will be addressing the Conference on a multitude of judiciously selected topics. Mr. Bharat Vasani, Group General Counsel Tata Sons Limited, will talk on “Inter Corporate Loans & Investments”; Mr. Cyril Shroff, Managing Partner Amarchand & Mangaldas & Suresh A Shroff & Co. will speak on “Capital Raising”. Post lunch, a panel discussion on ‘Corporate Governance, Mergers & Acquisitions, and Minority Actions & Class Action’ will see renowned panelists like Mr. Cyril Shroff, Mr. Sharad Abhyankar, and Mr. Bharat Vasani presenting their views, moderated by Mr. Anand Desai, Co Chairman, Law Committee Managing Partner, DSK Legal. The other topics to be covered are “Accounts, Audit and Tax implications” by Mr. Sudhir Soni Partner, S.R. Batliboi & Associates LLP and Mr. Amrish Shah Partner, Ernst & Young LLP. Post tea, a session on “Duties and responsibilities of Directors including Independent Directors” will be presented by Mr. Mahendra Chouhan, Chairman, Mahendra & Young Knowledge Foundation; “Corporate Social Responsibility and Tax implications” by Mr. Chaitanya Kaliya and Mr. Sunil Kapadia, Partners, Ernst & Young LLP. The concluding session will cover the topic “Restructuring & Liquidation” presented by Mr.L Viswanathan, Partner, Amarchand & Mangaldas & Suresh A. Shroff & Co.

Announcing the Conference, Mr. Shailesh Vaidya, IMC President said, “This legislation is most welcome and it will certainly revolutionize the management and administration of corporates. This Bill brings about several changes, which aim to bring greater clarity and transparency in corporate business. However, repercussions of certain provision of independent directors and Corporate Social Responsibility (CSR) need to be considered.”

The provisions for the definition and role of Independent Directors in the new Bill have raised many concerns among the head honchos in the corporate sector. A sense of wariness and unease has crept in with the new code of accountability laid out in the new Bill. The other debatable point is related to Corporate Social Responsibility (CSR) hitherto deemed as the prerogative of company policies and management decisions. The new Bill envisages and rules that every company having net worth of INR 500 crore or more, or turnover of INR 1000 crore or more or a net profit of INR 5 crore or more during any financial year has to constitute a Corporate Social Responsibility (CSR) Committee consisting of three or more directors, with at least one independent director. The CSR Committee to formulate CSR Policy and also recommend the amount of expenditure to be incurred on the CSR activities. At least 2% of the average net profits of the company made during the three immediately preceding financial years to be spent on CSR activities. The Conference proposes to study, evaluate and analyze the implications and repercussions of such provisions on the corporate sector.

The new Companies Bill 2012 has had a tumultuous journey lasting the entire term of the current government. Introduced as the Companies Bill 2009 in Lok Sabha on August 03, 2009, it went on to be referred to the standing committee on finance. It came back to the House as Companies Bill 2011 only to be sent back to the standing committee. It finally found common ground and acceptance in the Lok Sabha, when it was passed on December 18, 2012. Winning over the Rajya Sabha took another seven odd months before it was finally passed on August 08, 2013. Now rechristened as the Companies Bill 2013, it awaits the customary Presidential nod, to be enacted and become a law, replacing the old Companies Bill 1956.

The Conference will be of immense interest to Independent Directors, Chief Executive Officers (CEO), CFOs, Compliance officers, In-house Counsels, Corporate Lawyers, Legal Head, Chartered Accountants and Cost Accountants.