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LS passes Companies (Amendment) Bill, 2016

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New Delhi [India], July 27 (ANI): The Lok Sabha passed the Companies (Amendment) Bill, 2016. Several amendments were moved by the government during the passage of the Bill.The Bill amends the 2013 Act to address difficulties in implementation with respect to compliance requirements and facilitates ease of doing business.

During the debate, members pointed out that a high number of sections of the Companies Act has not yet been notified which is leading to implementation issues and sought a reply from the government in this regard.  Some members raised their concern about independent directors being allowed up to 10 percent pecuniary interest in the company. Members felt there could possibly be a conflict of interest in this.It was also pointed out that clarity on several aspects of the Bill has been left to delegated legislation.

The Indian Institutes of Management Bill was taken up in the Lower House. It declares 20 existing IIMs as institutions of national importance and confers on them the power to grant degrees. To know more about the bill you can watch our video here. Discussion on the Bill will continue tomorrow.

The Indian Institutes of Information Technology (Public Private Partnership) Bill was passed by the Upper House. The Bill declares 15 existing Indian Institutes of Information Technology established through public-private partnership as institutions of national importance. PPP is a partnership under a scheme of the centre which provides for the establishment of institutes through collaboration between the centre, the state government and industry partners.  Industry partners can be individuals, trusts, companies or societies.

Participating in the debate members raised their concerns about the need for a single curriculum in these IIITs, financing of the institutes, measures to keep fees in check, among other things. Some member also added that these institutes could help entrepreneurs and startups, and promote civic technology studies for the Smart Cities program. (ANI)

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