LS takes up Companies Bill for consideration
The changes, once in place, would amend the Companies Bill that has been in force since 1956.
If companies are unable to meet CSR norms, they will have to give explanations. In case, the companies are not able to do the same, they have to disclose reasons in their books. Otherwise, they would face action, including penalty.
The amended legislation also limits the number of companies an auditor can serve to 20 besides bringing more clarity on criminal liability of auditors.
There are proposals for annual ratification of appointment of auditors for five years and introduction of a new clause related to offence of falsely inducing banks for obtaining credit.
First introduced in August 2008, the Bill was withdrawn as the Lok Sabha was dissolved. It was again introduced in Parliament in 2009 and sent to the Standing Committee, which presented its report in August 2010.
Participating in the discussions on Companies Bill, Sanjay Nirupam (Congress) said there should be more clarity on implementing CSR activities by companies.
He noted that intentions of the Serious Fraud Investigation Office (SFIO) should be checked so as to ensure there is no misuse.
Citing the fraud that had come to light at erstwhile Satyam Computer Services, Nirupam wondered why no action has been taken against auditing firm PwC, which had done auditing work for that entity.
Echoing similar views, TMC's Saugata Roy said the government has not imposed any restrictions on PwC following the Satyam fraud even
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