India's new Companies Act model for others: Wolters Kluwer

The new Companies Act enacted by India last year is not just a modern legislation addressing the contemporary corporate needs, but also a model which other countries can follow, an expert in the subject has said.

"The 2013 act provides an opportunity to make corporate regulations more contemporary," said Thomas Abraham, managing director of Wolters Kluwer, which is a leading source of and information, tools and expert advice on taxation, accounting and legal issues.

"Potentially it can make India's corporate regulatory framework a model to emulate for other economies with similar characteritics," Abraham told a seminar here that focused on dissecting the new legislation.

According to him, the new act merged modern practices, with attractive features such as those on setting up entities, raising capital from public, friendly rules, leveraging e-governance initiatives and corporate social responsibility.

"While emphasis has been on enhanced accountability both at management level as well as auditors, enhanced disclosure norm, investor protection and regulatory framework for oversight, the focus has been on greater self-regulation," he said.

The sessions of day-long conference included those on corporate governance, the societal responsibilities, mergers and acquisition regime in India, role of stakeholders, audit standards, legal framework, regulation and grievance redressal.

The emphasis was on providing a better understanding of the practical issues from the industry's point of view, as also the objective observations and perspectives of the practitioners to some 60-odd corporates.