Wednesday, December 19, 2012

Companies Bill as Approved by the Lok Sabha

The new companies legislation took a major step yesterday by receiving the approval of the Lok Sabha (India’s lower house of Parliament), and it appears to be inching closer to reality. The version of the Bill as approved by the Lok Sabha and a set of corrigenda are available on the website of the Ministry of Corporate Affairs (here and here) respectively.

Another development is the passage of the Banking Laws (Amendment) Bill, 2011 by the Lok Sabha, which (when enacted) is likely to infuse greater private capital into India’s banking industry. Among several changes is the enhancement of the voting cap on shareholders, from 10% to 26% in private sector banks, and from 1% to 10% in public sector banks.

Update - December 27, 2012: The links to the Bill above are to earlier versions. An updated version of the Bill as approved by the Lok Sabha on December 18, 2012 is now available here.

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