90% rules for new Companies Act to be notified by early January: Corporate Affairs Ministry
Most of the rules and provisions related to the new Companies Act, 2013 will be notified by first half of January 2014, top official from the Corporate Affairs Ministry said at an event organised by industry body Assocham in New Delhi.
“The Law Ministry is currently tied up with issues related to Telangana but by early January 90 per cent rules for the Companies Act will be notified,” M.J. Joseph, additional secretary and chief vigilance officer, Corporate Affairs Ministry said this while inaugurating a national seminar on ‘Independent Director-Role & Responsibilities under Companies Act, 2013’ organised by The Associated Chambers of Commerce and Industry of India (Assocham).
In his address at the Assocham seminar, Joseph also informed that the Corporate Affairs Ministry is likely to come out with a proposal to constitute a database of independent directors to help corporates choose suitable people for appointment as currently there is a demand of about 30,000 independent directors. “This is an issue under discussion in the ministry and a clear proposal for constituting such a databank will be announced shortly,” said Joseph.
He further informed that ministry is seeking global expertise in imparting training for Indian professionals interested in appointment as independent directors.
“A MoU (memorandum of understanding) between UK (United Kingdom) based Institute of Directors (IoD) and Indian Institute of Corporate Affairs (IICA) is being signed tomorrow in Chennai. In next few months, IICA jointly with IoD will offer specialised training courses for Indian corporate that will offer Certification to be issued jointly by IICA and IoD,” said Joseph.
He added that such courses will certainly help to improve skills and knowledge of potential candidates for appointment to Boards of corporate.
On the role of independent directors, the additional secretary said, “It is up to the individual concerned to determine how independent he or she would like to be as independence is the state of mind and depends upon individual’s ability to challenge and ask important and right questions at Board meetings.”