What was the response and feedback to the concept paper?
The idea of launching the Concept Paper on Company Law on the MCA’s website is to provoke critical examination from all stake-holders. The suggestions have started pouring in and it is expected that by October 31 more and meaningful suggestions would be received from major chambers of commerce, professional bodies, institutions, etc. The approach in the concept paper has been appreciated by all, including the department related parliamentary committee. Companies Act is considered to be a long and complicated one. Do you have any proposal to prune and simplify it? Yes, the existing Act consists of 781 Sections. It has been proposed to reduce these provisions by deleting all redundant provisions, arranging all relevant provisions in accordance to their relevancy and priority. All procedural and routine provisions are proposed to be shifted to rules. Now, in the concept paper the number of provisions has been reduced to only 289. How does the new Companies Act propose to deal with fly-by-
