On account of increasing importance of businesses to the economics and complexities of operating in an inter-dependent world necessitated this Ministry to constitute a Committee to formulate a Policy document on Corporate Governance under the Chairmanship of Shri Adi Godrej on 07.03.2012. The Committee has since submitted its report to the Central Government. Giving this information in written reply to a question in the Lok Sabha, Minister of Corporate Affairs, Shri Sachin Pilot, said that the Companies Act, 2013 which has received the assent of the President incorporates certain important provisions with regard to following matters to facilitate Corporate Governance in India:

i) Faster incorporation / registration of companies through fully electronic MCA-21   Registry provided;

ii) Companies allowed to maintain records and hold meetings through e- governance mode;

iii) Companies empowered to function in a manner which is ‘self-regulated with disclosures/transparency’ rather than ‘Government/regulatory approval based regime’;

iv) Concepts of ‘One Person Company’ and ‘Small Company’ recognized to allow   new entrepreneurs to take advantage of corporate form of business;

v) Faster mergers and acquisitions including short form of merger and cross border mergers allowed;

vi) Time bound approvals through National Company Law Tribunal (NCLT);

vii) Summary liquidation process for a class of companies provided.

Corporate governance reforms expand electronic incorporation and self-regulation, enabling one-person companies and streamlined tribunal approvals. The Companies Act, 2013 creates corporate governance reforms enabling electronic incorporation via MCA-21, permitted maintenance of records and meetings through e-governance, and a disclosure-led model of self-regulation with transparency. It recognises One Person Company and Small Company categories, streamlines mergers including short-form and cross-border mergers, provides time-bound processes through the National Company Law Tribunal, and establishes a summary liquidation procedure for certain companies.