Independent directors of many companies post the Satyam episode were apprehensive about continuing with their roles, said R Bandhopadhyaya, secretary, Ministry of Corporate Affairs. He was speaking on the new Company Law Bill, corporate social responsibility and inclusive growth in the corporate sector at the Federation of Andhra Pradesh Chambers of Commerce and Industry on Tuesday. The new Bill, for which a committee of 32 Members of Parliament has been constituted, would bring in more clarity to the roles of directors and independent directors, he said. The one-person company, a new entity proposed to provide startups and professionals flexibility in setting up a business in India, would be a reality once the Bill was passed. The role and growth of chartered accountants, company secretaries, cost accountants and other professionals too would be spelt out, he said. The Bill would also facilitate mergers and acquisitions through the Registrar of Companies, departing from the present practice of getting the nod from the respective high courts. Stating that India was a signatory to move to the International Financial Reporting Standards (IFRS) from April 2011, it would, however, take about two years more for the banking, insurance and small and medium enterprises to move to IFRS from the present Generally Accepted Accounting Practices (GAAP). "These issues are being addressed by a designate committee by making separate provisions for the SME sector," he said. According to Bandhopadhyaya, the government has issued corporate governance guidelines but it is not mandatory for companies to implement all of them. However, companies should answer to their own boards why they could not implement the guidelines, he said, adding the ministry was in favour of encouraging inclusive corporate growth. The government has also proposed to set up a regional wing of MCA in Hyderabad.
