Steps Taken by Government to improve the Corporate Management

The Minister of State (Independent Charge), Shri. Rao Inderjit Singh in the Ministry of Corporate Affairs in a written reply to a raised in Lok Sabha Stated, “Yes! Steps Taken by Government to improve the corporate management.”

The Companies Act, 2013 (Act) contains relevant provisions for management of companies through key managerial personnel, board of directors and shareholders. The Act contains provisions for maintenance of books of account, disclosure by board of directors in financial statement and audit by independent auditor. Further, provisions on good corporate governance viz appointment of independent directors, constitution of various Committees of the board of directors for bigger public companies, detailed disclosures and independence of audit etc. have also been provided in the Act. The provisions of the Act are reviewed and amended by the Government, from time to time, based on suggestions received from various stakeholders as well as on the recommendations of the Company Law Committee. In the last 3 years, the Act has been amended vide the Companies (Amendment) Act, 2020 vide notification dated 28.09.2020 to improve the Corporate Management.