The Union Cabinet has cleared the Companies Bill 2011, which is a great step to replace the 50-year-old Companies Act. The bill will be tabled during the Winter Session of the Parliament.
The Companies Bill 2011 has provisions in accordance with the global practices. It has introduced features such as Corporate Social Responsibility (CSR) and a fixed term for independent directors.
The bill has certain provisions that would completely change the structure in Indian Corporate sector. The changes have been pending for long time. After two failed attempts in 2008 and 2009, it is all set to get the Parliament's nod in 2011.