Press Information Bureau

Government of India

Ministry of Corporate Affairs

09-December-2011 21:24 IST

Shri R P N Singh , Minister of State for Corporate Affairs, While delivering the ICSI FOUNDATION DAY Lecture here today has said that ,” The professionals like Company Secretaries have been playing an important role in shaping modern Corporate India .He appreciated the efforts of the Institute of Company Secretaries of India and said that “the ICSI and its members have made a name for themselves in economic development of the country through evolving standards of corporate governance and compliances”. He also commended the Institute for its conscious efforts in formulating its Vision Document after extensive research and conducting market survey among its stakeholders to know their perception about the profession and their expectations from the professionals. He lauded the efforts of the Institute and said that,” the ICSI is taking steps to add value to the profession and driving it successfully towards excellence.”

Speaking on the Theme: Game Changer for Corporate India: 2020, he emphasised that, “As regards Governance, if Indian corporates have to create a mark on the international horizon, it will have to establish a brand of its own in the areas of good governance practices which are seen by the global community as genuine, effective and reliable and it is much important that the culture and ethos of the company be developed. The Minister also emphasised on various factors which will act as a Catalyst for Game Changer for Corporate India 2020 in the current decade like: Legal and Regulatory Environment, Emergence of New Forms of Corporate Entities like Limited Liability Partnership (LLP) and One Person Company (OPC) are new forms of corporate entities providing alternative forms of business entities to the entrepreneurs. LLP Act is already in place and over 5000 LLPs have been incorporated. These developments will enhance the corporatisation of the Indian business and Governance whereas per the “India Vision 2020” report of the Planning Commission of India, the overall process of governance will be greatly improved by making Government agencies of all types at all levels more responsive.

He also spoke about various initiatives of the Ministry of Corporate Affairs where he explained various initiatives by MCA in creating a Regulatory Ambience in the country like e-GOVERNANCE-MCA 21, MCA INITIATIVES FOR PROCEDURAL SIMPLIFICATION, ELECTRONIC MEETINGS AND ELECTRONIC VOTINGS.and the COMPANIES Bill .

Speaking on the Companies Bill, which is proposed to be placed before the Parliament in the Winter Session, the minister informed that, “once passed, the new Act will update the Company Law in line with the best global practices and introduce new ideas such as corporate social responsibility (CSR), class action suits and a fixed term for independent directors. The Bill also proposes to tighten laws for raising money from the public besides prohibiting any insider trading by company directors or key managerial personnel by treating such activities as a criminal offence. It will also make mandatory for companies to earmark 2 per cent of their average profit of the preceding three years for CSR activities and make a disclosure to shareholders about the policy adopted in the process”.

Shri Anil Murarka , President ,The ICSI , appreciated the initiatives of MCA which are commendable in moulding the corporate India and the professionals, especially the initiatives relating to e-governance, green initiatives etc. He emphasised that, ”Company Secretaries, being governance professionals, while playing the important role of a business manager, adviser and value enhancer to board and senior management on good board practices, compliances, sustainability, business ethics, risk management etc., are also responsible for other stakeholders with respect to environmental aspects, shareholders democracy, compliance of law in letter and spirit, aspects relating to Corporate Social Responsibility etc.”It is in this role play, that the Company Secretaries should have the thorough understanding of not only domestic and international regulatory regimes, but also other areas such as effective risk management, adoption of corporate governance practices in such a manner that helps in maintaining high standards of accountability, transparency and ethics, he said.”

Shri Nesar Ahmad , Vice –President , the ICSI informed about the setting up of the Institute of Company Secretaries of India. He Informed that The Institute of Company Secretaries of India – the youngest of the professional bodies was set up on 4th October, 1968 and converted into a statutory body under an Act of the Parliament, the Company Secretaries Act,1980. He urged all the Professional Colleagues and Members of the Institute on occasion of the ‘ICS Foundation Day’ to rededicate themselves to professional values and to make sincere efforts to strengthen the foundation of this noble profession as visualized by illustrious past presidents of the ICSI , successive councils and senior members of the CS profession .

In his concluding Shri N K Jain, Secretary & CEO, the ICSI thanked all the dignitaries present on the occasion

ST/PKM/sr

Corporate governance reform: Companies Bill to mandate CSR and criminalise insider trading while strengthening director norms. The press release emphasises the proposed Companies Bill as a key reform aligning company law with global practices by introducing obligations such as Corporate Social Responsibility, class actions, fixed tenure for independent directors, tighter public fundraising controls and criminalisation of insider trading; it underscores parallel governance shifts from alternative corporate forms, e governance initiatives and the enhanced advisory and compliance role expected of Company Secretaries.