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    The document summarizes the key recommendations of the Dr. J.J. Irani Committee Report on Company Law from 2005. The committee, chaired by Dr. J.J. Irani, was tasked with reviewing India's Companies Act from 1956 and providing suggestions to reform corporate governance standards and the legal framework. Some of the major recommendations included introducing independent directors, one person companies, more power to shareholders, and stringent penalties for non-compliance. The report aimed to balance modern business needs with shareholder democracy and provide a growth-oriented framework bringing India's laws up to international standards.

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    The document summarizes the key recommendations of the Dr. J.J. Irani Committee Report on Company Law from 2005. The committee, chaired by Dr. J.J. Irani, was tasked with reviewing India's Companies Act from 1956 and providing suggestions to reform corporate governance standards and the legal framework. Some of the major recommendations included introducing independent directors, one person companies, more power to shareholders, and stringent penalties for non-compliance. The report aimed to balance modern business needs with shareholder democracy and provide a growth-oriented framework bringing India's laws up to international standards.

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    2K views19 pages

    DR.J.J Irani

    Uploaded by

    ritusin
    The document summarizes the key recommendations of the Dr. J.J. Irani Committee Report on Company Law from 2005. The committee, chaired by Dr. J.J. Irani, was tasked with reviewing India's Companies Act from 1956 and providing suggestions to reform corporate governance standards and the legal framework. Some of the major recommendations included introducing independent directors, one person companies, more power to shareholders, and stringent penalties for non-compliance. The report aimed to balance modern business needs with shareholder democracy and provide a growth-oriented framework bringing India's laws up to international standards.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 19

    DR. J.

    J IRANI COMMITTEE REPORT ON COMPANY LAW,2005

    BRIEF INTRODUCTION

    CORPORATION : It is creation of law as an

    association of persons forming part of the society in which it operates.

    GOOD CORPORATE GOVERNANCE

    Good Corporate Governance are not born , but are made by the combined efforts of all Stakeholders which include Shareholders , Board of Directors , Employees, Customers , Dealers , Government and the Society at large.

    DR. J.J. IRANI

    The Chairperson of the Committee of Company Law , 2005.

    Responsible for giving the Suggestions in laying Sound Base for Corporate Growth in coming years.

    On August 4, 2004 the Ministry of Company Affairs had published a Concept Paper on Company Law on its website to enable a broad-based examination of various Company Law issues requiring revision. Later, on December 2, 2004, the Government constituted an Expert Committee on Company Law under the Chairmanship of Dr. J.J. Irani to make recommendations on :

    RECOMMENDATIONS BY DR. J.J IRANI


    Responses received from various Stakeholders on the CONCEPT Paper. Issues arising from the revision of the Companies Act, 1956. Bringing about compactness by reducing the size of the Act & removing redundant provisions. Enabling Unambiguous interpretation by recasting the provisions of the law.

    Providing greater Flexibility in rule making. Protecting the interests of the Stakeholders, Investors, Small Investors.

    SPECIAL INVITEES FOR COMMITTEE


    Trade & Industry Associations Chambers of Commerce Senior Advocates & Auditors

    Representatives of Govt. depts.


    Regulatory Bodies Professional bodies and Institutes

    IMPORTANCE OF THE REPORT


    The Irani report has made suggestions to reform and update the basic corporate legal framework essential for sustainable economic reform. It will helps in making Sound Base for Corporate Growth in the coming years. It is balanced and well rounded document attempts to equate the pulls and pressures of Modern Business and those of Shareholders Democracy.

    It is the step towards providing a Growth Oriented and Modern Company Law. It address the concerns of all the Stakeholders to enable the adoption of internationally accepted best practices.

    ISSUES REGARDING REPORT


    Independent Directors Single Person Company

    Pyramidal Strs.
    Selfregulation Accounts & Audits and Governance Standards

    Power to Shareholders Stringent Penalties

    INDEPENDENT DIRECTORS
    50% of the Board of a listed company consist of Independent Directors. 1/3rd of the Board of a listed company should comprise Independent Directors.

    PYRAMIDAL STRUCTURES

    Subsidiary Companies could itself be a Holding company.

    POWER TO SHAREHOLDERS
    Liberty to the Shareholders. Shift from govt. approval regime to a Shareholders approval and disclosures regime. Protect the Rights of Minority Shareholders

    SINGLE PERSON COMPANY

    Introducing the concept of One Person Company (OPC)

    STRINGENT PENALTIES

    Help to curb fraudulent Behaviour of the companies

    ACCOUNTS AND AUDITS


    Proper and Accurate Compilation of financial information of a Corporate and its Disclosure. Stringent penalties in case for Non-observance.

    GOVERNANCE STANDARDS
    It is hoped that that Committees report will give a new thrust and fresh perspective to the Govt. on Company Law. It has just submitted its recommendations but its thrust is reminiscent of attempts in the U.S. and elsewhere to tone down the rigour of the emerging Law.

    THANK YOU

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