Finance Minister N Sitharaman’s reply to the debate on Companies (Amendment) Bill, 2019 in the Rajya Sabha
- Gandhiji’s trusteeship principle is with which profit-making can not be devoid of social responsibility. The amendments we are bringing now are only to sharp focus that and make it far more effective.
- Here is a Companies Act that is undergoing major changes. We are trying to bring in ease of doing business, bringing in a robust framework through which the Companies Act can be implemented.
- We are declogging the NCLT by shifting of routine matters out of that. We are also trying to rationalise and recategorise minor offences for civil defaults.
- Now it has become mandatory that companies do have a physical address. Physical register is to be maintained so that people can go and check them and there is a veracity of their claims.
- Breach of ceiling on directorship is being made a ground for disqualification. For instance, if the numbers are crossed for holding the directorship beyond the permissible limit, it will bring in disqualification.
- Even before you start the function, it is necessary for the company to declare before commencement of business.
- Companies will now have to explain where they have spent the CSR money. We are giving a three years window after which they will have to move the CSR money in an escrow account if they don’t spend it.
- Sec. 135 is being amended to provide for a specific penal provision in case of non-compliance of CSR.
- We are strengthening the enforcement provisions that enable the SFIO to ensure speedy and more effective enforcement, including actions of disgorgement.
Time to consider amendments to the MSME act so that an MSME can put invoices for which payments are due in Public Domain in order to put pressure on those who have to pay: Jairam Ramesh
Speaking in the Rajya Sabha today on The Insolvency and Bankruptcy Code Amendment Bill, 2019 Congress MP Jairam Ramesh said that:
- Its time for IBC to shift gears and focus on the MSME sector.
- Its time to consider amendments to the MSME act so that an MSME can put invoices for which payments are due in Public Domain in order to put pressure on those who have to pay.
- Compliments to the Govt. for reacting to ground level emerging situations and quickly coming up with Amendments to IBC.
Possibility of lender with small exposure putting at risk big lenders: Congress MP Dr T Subbarami Reddy
Speaking in the Rajya Sabha on the The Insolvency and Bankruptcy Code Amendment Bill Dr T Subbarami Reddy said:
- Clear the air if the lender can go to a corporate guarantor first without first exhausting his options with the borrower.
- Even a small lender with an exposure of 30 to 40 lakhs is able to approach NCLT.
- Then NCLT appoints resolution professionals who replace the Management and run the company.
- What do they know about running a company, if they take any wrong decision all the lenders money including Banks’ money is put to risk.
- It is possible for a Promoter to make his own men approach NCLT and get a cut of 30, 40 50 or 60% of his debt. This loophole should be plugged.
Schools and Colleges in the State are being run for profit like a business enterprise: YS Jagan
AP CM YS Jagan touches upon the fees charged by Private School while speaking in the Assembly today. He said:
- Private Schools are charging fees as per their own discretion.
- There is no control on the fee mechanism employed by them.
- In the earlier regime some of the Ministers were themselves owners of private schools.
- Some schools are charging anything upwards of Rs 60,000 even for LKG and UKG classes.
- Private Schools and Colleges are being run for profit like a business enterprise.
- As per the rules Schools and Colleges cannot be run for profit. But what we are witnessing here is to the contrary.