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Thursday, August 8, 2013


Mumbai/New Delhi -India has ratified the first overhaul of company law in more than 50 years on Thursday in an effort to strengthen accounting standards and the rights of shareholders in the country, where many businesses are controlled by the family.


Parliament approved a new bill that contains provisions that allow a shareholder class-action lawsuits and require you to spend 2 percent of their annual net profits on corporate social responsibility, such as social work or volunteer companies with a market capitalization of more than 5 billion rupees.


The new law replaces the companies legislation in 1956, the year length to reform in 1990 's opened its economy and laid the Foundation for the boom in privately operated company.


"It's been a long time coming. The new law brings our corporate law closer to global standards and definitely will go a long way in improving how business is done, "said Dinesh Kanabar, Deputy General Manager of KPMG in India.


The legislation is part of an ambitious agenda at the current session of Parliament, which includes a plan of cheap food 22 billion dollars, which will be at the heart of the Congress Party in elections due by may.


The companies Bill, which will replace the legislation, which was often criticized for being outdated and cumbersome, were in the works for at least a decade, but gained momentum after the accounting scandal at Satyam computer services in year 2009.


India is ranked 139th globally in the World Bank's ease of doing business report, for small countries like Zambia.


It is expected that President Pranab Mukherjee sign a Bill into law.

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