In order to counter the growing menace of black money and money laundering the Government is now considering bringing about some major changes in the Company Act and some other laws. These changes as proposed by an inter-ministerial committee set up by the finance ministry are aimed at helping the Government to identify the ‘beneficial ownership’ of assets, including companies, as opposed to legal owners. The committee has suggested that company officials and auditors should be made liable to disclose the true identity of those exercising control over assets such as companies.
The 2G telecom spectrum probe has highlighted the lapses in the existing laws with regard to the above mentioned matter as investigators are finding it difficult to discover the final beneficiaries of the telecom licenses issued in 2008.
Identifying real owners as against registered owners is the main objective of the changes that maybe brought about.