Several provisions of Companies (amendment) Bill being reviewed

The department of company affairs has said several provisions of the Companies (amendment) Bill, 2003, currently in Parliament, were being reviewed to address the concerns of the corporate sector. Stating that the department was open to suggestions and comments on the Bill, Joint Secretary, DCA, Rajiv Mehrishi, said the provision restricting appointment of a supplier, vendor or customer as an independent director was under review. The issue of losing independence after serving for nine years on the board was also being looked into, a CII release said quoting him.

DCA was planning the removal of section 252A from the Companies Act and providing the issues in the companies rules. Justifying the provision to restrict a subsidiary company from having further subsidiaries, Mehrishi said this was primarily to facilitate funds recovery.