Letters to the editor: New companies law

Updated: Sep 30 2013, 07:37am hrs
The recently passed Companies Bill has many formidable changes protecting the stakeholders interests in a company. Prominent among this is the provision on class action suits which will enable the shareholders and other investors to claim compensation from erring management, auditors, consultant and advisors to the listed company, something which was hitherto not available. We are all aware of the three lakh small investors who lost nearly R8000 crore in the Satyam scandal a couple of years back. In the same case, investors in the US got $125 million after filing class action suits in the courts. Such is the legal relief afforded to the common investor in developed countries under their legal system.Let us hope with this new concept of class action in place under the new Companies Bill, top management, auditors and directors of the listed companies will be more careful while conducting business using shareholders money.

Satish Murdeshwar


US job scenario bleak

Apropos of the column Give jobs a chance (FE, September 17), despite the US economy's recent revival, it is definitely not following the same pattern as it was in pre-crisis. The government is reluctant to spend more because of the fear of rising debt. The monetary stimulus has replaced the fiscal stimulus but its impact on employment is not showing at the moment. The structural reforms and slow jobs absorption is keeping the people out of the labour market. As more and more capital is diffused, the economy is growing but not necessarily bettering the employment situation. The growth push is likely to create more space for earning by the government which at a later stage would be in position to provide better employment opportunities to the citizens. Any premature squeeze of the monetary stimulus is likely to pose a danger to the US economy apart from seriously hurting the emerging markets.

RK Arya


Online filing a good idea

Apropos of the edit Tax passbook (FE, September 17), kudos to the income tax department for joining hands with technology and overhauling our crumbling tax system. The initiative to go online is a bold step towards ensuring transparency. No longer will tax defaulters be able to get away as better policing on non-filers can be easily done. The e-filing initiatives have already borne fruits which are apparent given the rise in tax submissions this year. The IT department just took a big leap of faith in this digital age and thats commendable!.

Gaurav Gupta