CII Karnataka Workshop on Companies Act 2013
Bangalore 30th June 2014… CII Karnataka, today organized a workshop on the Companies Act 2013 with the objective of gaining a uniform understanding of the Act across industry verticles. Organizations are now faced with the challenge of adapting to the Act which has dramatically changed the landscape of Corporate India.
The session saw active participation from known experts in the field with Mr. Harish Narasappa, Co-founder & Partner, Samvad Partners, Mr. P R Ramesh, Chairman, Deloitte India, Mr. Siddarth Raja, Partner, Samvad Partners & Mr. V Balaji, Partner, Deloitte Haskins & Sells, sharing their expertise on the subject.
Speaking at the event Mr. Sandeep Maini, Chairman, CII Karnataka, said “in absence of any unambiguous clarifications from the ministry of corporate affairs, companies are resorting to different interpretations of the provisions of the Companies Act, 2013. There is no uniform interpretation of even items of ordinary business such as appointment of independent directors. And this is a challenge faced by public as well as private enterprises. While the country is looking to improve its image after a series of setbacks like retrospective changes to tax laws, poor economic conditions, etc., an unclear and cumbersome Companies Act would make things worse. India already ranks very low in terms of ease of doing business and the new act will further add to the cost and complications of doing business”.
Mr. G Madhusudhan Rao, Co-convenor, Economic Affairs Panel, CII Karnataka said “Due to the hurried pace in which the Companies Act, 2013 and the Companies Rules, 2014 were implemented, the industry barely got an opportunity to absorb and understand the provisions or their impact in their entirety. Many new concepts are being introduced in the legislation for the first time, and practices with respect to these need to be allowed to evolve over time. However, the rush to notify the Act has introduced disruptive features making it harder for corporates to ensure compliance”
The workshop covered key provisions in the Companies Act i.e. New Requirements (appointment; qualifications; resident directors; gender diversity, etc.), Key changes in the Board’s Report to the members, Changes in financial reporting - from the perspective of both private and public companies, Loans and Investments; Related Party Transactions, Key Managerial Personnel - New conceptual framework and challenges etc.