Govt won't revise corporate governance norms, says Arjun Ram Meghwal

Before the institution of the National Company Law Tribunal, disputes were settled by the Company Law Board

Government has no plans to revise corporate governance guidelines against the backdrop of allegations made against big businesses, Union Minister Arjun Ram Meghwal told the Lok Sabha on Friday.

Illustration: Binay Sinha

Meghwal replied in the negative to a question whether government proposes to revise the corporate governance guidelines due to the ongoing allegations against giant corporate houses.

The query also comes amid the ongoing boardroom battles between the Tatas and Tata Sons' ousted chairman Cyrus Mistry, which has raised concerns over corporate governance practices.

"Companies are required to comply with corporate governance requirements as prescribed in the Companies Act, 2013, and rules thereunder. The Act and the prescribed rules provide for adequate safeguards to protect minority shareholders," the minister of state for corporate affairs said in a written reply to the Lok Sabha.

In a separate reply, the minister said corporate cases involving disputes between two or more corporates or their promoters are adjudicated by the National Company Law Tribunal (NCLT).

NCLT, set up under the Companies Act, 2013, has started functioning from June. It has 11 benches spread across various cities, including the national capital.

Previously, such disputes were adjudicated by the Company Law Board.