Several provisions in the Companies Act 2013 were fuzzy and need clarification.

This emerged out of a seminar on ‘Çhanges and Challenges of Companies Act 2013’, organised by the CII here today.

Speakers, while welcoming the initiative, were optimistic and these issues in the Act would be clarified in the months to come.

N. Krishnamoorthy, Registrar of Companies, Hyderabad, was happy that the new act gave importance to every profession, including chartered accountants, company secretary and registered valuers.

“The focus of corporate governance is to impose disclosures and compliance and integrate Indian business with global markets,” he said.

C. Parthasarathy, Chairman of Karvy Group, focussed on the new role of independent directors in the Act. Stating that independent directors would have to play a greater role in companies, he felt that the compensation allotted to them was comparatively lower.

“Independent directors are supposed to bring an element of objectivity and ensure transparency. Corporate India will find it difficult to find suitable independent directors,” he said.

Vikas Pansari, partner SR Batliboi and Associates, said that issues related to depreciation of assets need some clarification in the act.

He added that the aspect regarding ratification of auditors at every annual general meeting also was a bit unclear. “The objective of the act is enhanced self-regulations coupled with investor protection and corporate accountability,” he said

amitmitra@thehindu.co.in

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