GOVERNMENT OF INDIA
Ministry of Corporate Affairs
UNSTARRED QUESTION NO: 301
TO BE ANSWERED ON 23.11.2009
The Companies Bill, 2009 Question
301. Shri Rajeev Chandrasekhar
Will the Minister of Corporate Affairs be pleased to state:
(a) by when the Companies Bill, 2009 is likely to come into force; and
(b) the steps Government has taken/proposed to take to prevent corporate misdoings, as in the case of the satyam fraud?
Minister of Corporate Affairs
(SHRI SALMAN KHURSHID)
(a) The Government has introduced the Companies Bill, 2009 in the Lok Sabha on 3rd August, 2009. The Bill has been referred to the standing Committee on Finance for examination. It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint after it is passed by the Parliament and receives the assent of the President of India.
(b) The Bill provides for more stringent provisions in case of fraudulent activities by the companies, their directories, auditors etc., and seeks to regulate related party transactions, prohibits insider trading, forward dealings in securities and special loans to directors.