Parliament passes Companies Bill

The Parliament Tuesday approved the Companies (Amendment) Bill, 2002 with Rajya Sabha returning it after Finance Minister Jaswant Singh assured that a comprehensive legislation on the subject would be introduced in the budget session of the Parliament.

Winding up debate on the Bill, Singh said it was aimed at reviving sick industries and not winding them up for which a revival fund would be created besides setting up of the National Law Tribunal.

The Bill, incorporating most of the amendments suggested by the Parliamentary Standing Committee, was passed by a voice vote.

The House also returned The Companies (Second Amendment) Bill, 2002, enabling cooperative institutions to voluntarily transform themselves into companies to compete with other enterprises on a competitive footing.

Replying to the combined discussion, Singh said labour would be fully represented on the proposed National Law Tribunal and interest of the labour would be protected.

According to the statement of objects and reasons of the Companies (Amendment) Bill, 2002, its objective is to facilitate or expedite revival/rehabilitation of sick companies and protection of workers interests and where necessary winding up companies.

The powers and jurisdiction being exercised by various bodies like Company Law Board or Board for Industrial and Financial Reconstruction or Appellate Authority for Industrial and Financial Reconstruction or High Courts will now be consolidated and entrusted to the proposed Company Law Tribunal.