New Delhi: The Ministry of Company Affairs and India Inc continue to differ on as many as ten issues with regard to the proposed new Companies Bill, including a cap on managerial remuneration, mandatory CSR and restrictions on subsidiaries, report CNBC-TV 18's Rituparna Bhuyan and Malvika Jain.
While differences between the government and India Inc persist, Corporate Affairs Minister Murli Deora on Thursday said that he will ensure that the new proposed Companies Bill is tabled in the forthcoming Budget Session of Parliament.
DK Mittal, Corporate Affairs Secretary said, "We will consider the suggestions and finalise the bill in a few days."
At a meeting on Thursday with ministry officials, India Inc once again reiterated that the proposed law should not stipulate a mandatory 2 per cent spend of annual profit on corporate social responsibility.
RPN Singh, MoS, Ministry of Corporate Affairs, said, "In my personal opinion, it should be mandatory."
India Inc also made it clear that it is not in favour of restricting the number of "layered" subsidiaries that a company can set up.
According to Suresh Senapaty, CFO, Wipro, restriction on layering would adversely impact financial leveraging. "Even the proposed cap on managerial remuneration is something that companies remain opposed to," added Senapaty.
Preeti Malhotra, Member, JJ Irani Committee feels that remuneration will have to be linked with quality of personnel. Malhotra said, "Nowhere in the world is it regulated by law. And everyone is okay with rotation but not rotation of firms."
"Corporates also want that equity shareholding with differential rights should continue and there be no restriction on the number of independent directorships a person can hold," added Malhotra.
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