Indian companies bill cleared by cabinet

The Indian cabinet has cleared the new companies bill, which is poised to significantly revamp and modernise the country's corporate regulatory infrastructure.

Having undergone significant revisions over the last two years, the new legislation is designed to replace the antiquated existing companies act, which has been in place since 1956.

Among the issues that the new laws will address include the introduction of a formalised concept of corporate social responsibility in India, as well as class action suits for investor protection and fixed terms for independent directors.

This legislative process was put into motion following a series of high-profile white collar crimes, including the Satyam accounting fraud case of 2009.

Having been cleared by the cabinet, the bill is likely to be tabled for discussion by the Indian parliament at some point during the current winter session.

This comes after corporate affairs minister Veerappa Moily stated last month that the government also wishes to implement a corporate governance index for the nation in order to improve standards further.