Is there any move to discourage registrations of multiple subsidiaries by companies?
In the provisions of the Companies Bill, 2009, you will see disclosure and consolidation of accounts and consolidation of financial statements. These are basically to give a fair and transparent picture of the structure of the company and its subsidiaries. It is all being provided very carefully. We can’t discourage people from forming companies — we need to encourage them. We have given them the option to form one-person companies, the LLP companies. So there is no question of discouraging them from forming companies. But there should be disclosure and there should be transparency, which is being assured — I hope — through the new legislation.
