May 13, 2015
Vivek Gupta speaks on the Companies (Amendment) Bill, 2014 | Full Transcript
Full Transcript
Sir, thank you for giving me this opportunity to speak on this Bill. Our Chief Minister, Ms. Mamata Bandyopadhyay, who is a champion of the MSME sector, has inspired me to stand here and speak on these amendments which appear to be technical in nature. But, in fact, I feel it is a half-hearted attempt.
Sir, I have a few suggestions to make. These amendments may be good, and these must have been debated. But, through you, I want to raise some practical points which the hon. Finance Minister can consider because I feel a second round of amendments will be necessary and he would be very shortly bringing them before the House.
Sir, a number of partners per audit is allowed. On the basis of a simple mathematical calculation of the number of companies that are there in India and the number of auditors that are available to audit them, the figure does not come down to 20 that is prescribed in this Bill. On the one hand, we talk about promoting entrepreneurship but, on the other, we have weakened all avenues for an entrepreneur to raise funds, from friends, families or related parties, under section 185.
Sir, for filing, the fee has been increased tremendously and for every small document, it has been increased to Rs. 500/-. Sir, this will affect the poor entrepreneurs who want to start their businesses.
Sir, another anomaly that this Act fails to address is the difference of depreciation that has been computed under the Income Tax Act and the Companies Act. Sir, 40 per cent of the Act is yet to be enforced. We do not know as to what is the fate of the 40 per cent of the Act. The most frequent word used throughout the Act is ‘as may be prescribed’ throwing it open for wide interpretation and litigation.
Sir, entrepreneurs and businessmen come together to do business by floating companies because they are all threatened with imprisonment. Again this has also not been addressed properly. The major deterrents should be addressed only in most serious cases and, that too, when it is proven beyond reasonable doubt.
Thank you, Sir.
