New Indian companies law among world’s best: minister

It borrows best aspects of other nations’ laws: Pilot.

By Global India Newswire

WASHINGTON, DC: The new Companies Bill will “put the Indian law at par, or beyond [corporate laws of] some of the most developed economies in the world,” Minister for Corporate Affairs Sachin Pilot said here.

Through the bill, which was passed by Lok Sabha last December, the government is trying to change the corporate governance landscape in India, the minister said, while inaugurating the Washington chapter of the Institute of Cost Accountants of India Friday.

Pilot, who is on an official visit to the U.S. capital, said the bill tries to adapt “some of the best aspects” of corporate laws of other countries in India’s unique ecosystem.

He described the legislative process as “strenuous.”

“The process lasted about 10 years, redefining the company law in India,” he said. “I have been lucky enough to have the opportunity to push it through parliament. It has been a bumpy ride.”

Speaking about corporate social responsibility, one of the features of the bill, Pilot said his ministry is “trying to structure the concept of putting back to communities in a formalized manner.”

The minister urged the companies to be more “specific and pointed” when it comes to corporate social responsibility, rather than being sweepingly ambitious. “I would rather have them spend $1 million dollar making schools or giving drinking water to villages that don’t have drinking water.”

Pilot also emphasized the need for standardized accounting, reporting and disclosures standards.

The minister, who arrived in Washington on an official visit Thursday, attended a series of meetings with U.S officials, including Chairperson of the U.S Federal Trade Commission Edith Ramirez.

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