MCA Mulls Code of Ethics for Top Brass
Provisions for officials of listed firms to be tabled in Parliament
WITH over half a dozen major scams involving top industry officials emerging lately, the ministry of corporate affairs is mulling over a stringent code of ethics for senior brass of listed companies.
Corporate affairs minister Murli Deora said that there were provisions for a personal code of conduct for top company officials in the final draft of the companies bill set to be tabled in the monsoon session of Parliament. Deora’s statement assumes significance as five business honchos were sent behind bars in the 2G spectrum scam on Wednesday.
CBI special court on Wednesday had ordered judicial custody for chairman of Unitech Wireless Sanjay Chandra, chairman of Dynamix Balwas group, Vinod Goenka, the group MD of Reliance ADAG, Gautam Doshi, and two senior VPs of Reliance ADAG, Hari Nair and Surendra Pipara.
“We are concerned aboutit (the arrest of top company executives) and the matter is worth considering," Deora said on the sidelines of a meeting held on regulations for different sectors.
Deora said the 2G scam was, at present, sub judicious and it was within the court's ambit to decide on the guilt and wrong doings of the companies.
Earlier, Deora said the ministry was in constant touch with industry captains to address all their apprehensions on new rules for mergers and acquisitions (M&A). “We will be holding a meeting in Mumbai on April 25, thereafter such meetings would be held with industry leaders in Hyderabad and Bangalore,” he said.
He said the earlier deadline to form regulations for M&As may, however, be missed (M&A regulations were scheduled to be released by the end of the month). However, their implementation will not be delayed and they would become operational by June 1.
"More and more people are coming up with new ideas and we do not want to miss any of them. We are still trying to bring together all the opinions," he said.
On companies bill, the minister said there were issues on which consensus was missing but the ministry would still go ahead with the bill in the coming monsoon session.
"Mandatory corporate social responsibility spending is an issue on which there are different views.
Some feel it should be mandatory while others are against it. Parliament standing committee has, however, recommended for 2 percent mandatory. Amidst all this, we will still introduce the companies bill in Parliament," Deora said.
Unified policy on contentious issues would help in resolving various differences in the companies bill, Deora sai
WITH over half a dozen major scams involving top industry officials emerging lately, the ministry of corporate affairs is mulling over a stringent code of ethics for senior brass of listed companies.
Corporate affairs minister Murli Deora said that there were provisions for a personal code of conduct for top company officials in the final draft of the companies bill set to be tabled in the monsoon session of Parliament. Deora’s statement assumes significance as five business honchos were sent behind bars in the 2G spectrum scam on Wednesday.
CBI special court on Wednesday had ordered judicial custody for chairman of Unitech Wireless Sanjay Chandra, chairman of Dynamix Balwas group, Vinod Goenka, the group MD of Reliance ADAG, Gautam Doshi, and two senior VPs of Reliance ADAG, Hari Nair and Surendra Pipara.
“We are concerned aboutit (the arrest of top company executives) and the matter is worth considering," Deora said on the sidelines of a meeting held on regulations for different sectors.
Deora said the 2G scam was, at present, sub judicious and it was within the court's ambit to decide on the guilt and wrong doings of the companies.
Earlier, Deora said the ministry was in constant touch with industry captains to address all their apprehensions on new rules for mergers and acquisitions (M&A). “We will be holding a meeting in Mumbai on April 25, thereafter such meetings would be held with industry leaders in Hyderabad and Bangalore,” he said.
He said the earlier deadline to form regulations for M&As may, however, be missed (M&A regulations were scheduled to be released by the end of the month). However, their implementation will not be delayed and they would become operational by June 1.
"More and more people are coming up with new ideas and we do not want to miss any of them. We are still trying to bring together all the opinions," he said.
On companies bill, the minister said there were issues on which consensus was missing but the ministry would still go ahead with the bill in the coming monsoon session.
"Mandatory corporate social responsibility spending is an issue on which there are different views.
Some feel it should be mandatory while others are against it. Parliament standing committee has, however, recommended for 2 percent mandatory. Amidst all this, we will still introduce the companies bill in Parliament," Deora said.
Unified policy on contentious issues would help in resolving various differences in the companies bill, Deora sai
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