The much-awaited Companies Bill 2011 is likely to be taken up in this parliamentary session, said Union minister for corporate affairs M Veerappa Moily. The new Companies Bill, which will replace a half-a-century-old Act, has made provisions for class action suit and corporate social responsibility.

It also has listed that dissenting shareholders should be given an opportunity to exit by promoters and shareholders having control in accordance with regulations that will be specified by market regulator Sebi.

Moily said he would like to see the new Companies Bill to be passed in the current session of Parliament, he said while addressing the ICSI Capital Markets Conference here on Monday.

Moily also said the government has taken initiatives for creating investor awareness. "We are having a series of discussion in five metropolitan cities on investments and governance. We are going to prepare a road map as to how the investment could be boosted, what are the hurdles and how to make business easy in this country. That's what we are going to address," the minister said.

"The draft policy is already on its way. The draft is expected to be submitted within a six-month period. The ministry of corporate affairs had last week set up a committee under Godrej Group chairman Adi Godrej, who has taken over as the president of industry body CII, to suggest a framework for the "highest quality" of corporate governance in the country."

According to the ministry, the committee will suggest a comprehensive policy framework to enable corporate governance of the highest quality in all classes of companies without impinging on their internal autonomy to order their affairs in their best judgement. The report is expected within six months.

On the National Corporate Governance policy, Moily said, "Confidence in Corporate India is still very high and we need to maintain it in future, too. It has been noted that the financial sector is investing more and more in Indian markets and it plays an important role in India's growth. The sector has emerged as one of the most prominent sectors and it is estimated to add 15 million jobs in the market by 2020."

"We are working very seriously on the crucial elements for the growth of the financial service sector such as measures to attract retail investment into the capital market, encouraging financial literacy, simplifying technical and financial information and procedural requirements, increasing use of technology and procedural requirements, increasing use of technology, bringing in transparency and accountability in the capital market and strengthening the grievance redress system." he said.

"I am sure our collaborative efforts would help us in achieving the intended objectives in a time-bound manner," Moily said. (Economic Times)