New Companies Billis planned to be tabled in the budget session of the Parliament beginning on February 21 . It was also hinted by Officials of the Ministry of Corporate Affairs that there would be no mandatory provision requiring companies to spend 2% of their profits for social welfare purposes, as recommended by the Parliamentary Standing Committee on finance.
“If the budget session is not washed out due to protests, we will definitely introduce the Bill in the session,” said a ministry official, pointing out that the draft is currently undergoing vetting at the Ministry of Law. The official also said the Bill, as framed currently, does not make it a legal requirement for companies to allocate 2% of their profits for community welfare activities as was being speculated.
It was also announced that Corporate Affair Ministry was removing three disclosure requirements imposed on unlisted companies at present in response to a demand from the industry.
- furnishing the accounts of all subsidiaries along with those of the mother company,
- furnish details of the exact quantities of production and other aspects
- getting the ministry’s clearance for management salaries.