Letters to the editor: Welcome Companies Bill

Updated: Aug 20 2013, 09:52am hrs
Apropos of the editorial More transparency (FE, August 10), with the induction of the proposed recommendations, the Companies Act, 2013, is expected to become more practicable and industry-friendly. It is really good news that finally the Companies Act will be in place. As a result of this, more and more companies are expected to come into existence, thereby generating more revenue for the national exchequer. Induction of independent director, changing of auditor every five years are appropriate steps to protect interest of shareholders and public as a whole. The involvement of auditors in Satyam case is still vivid in public mind. Allowing only two layers of subsidiaries will check the tendency of creating numerous subsidiaries or sister concerns to divert unaccounted/undisclosed transactions, is another step in the right direction. It is actually the biggest positive, especially from the point of view of disclosure, that only two layers of subsidiaries will be permitted.

Debabrata Sengupta

West Bengal