PARLI PANEL FOR RAISING COMPANY DONATIONS TO PARTIES
KT NEWS SERVICE
NEW DELHI, Sept 1: A Parliamentary Standing Committee has recommended

raising the limit of donations a company can make to the political

parties in a year from 5 per cent to 7.5 per cent of the average net

profits in three immediate past financial years.
It said increase in the maximum percentage of contributions allowed was

necessary "in view the fact that the number of political parties in the

country has increased and such donations are not made every financial

year."
The committee headed by Finance Minister Yashwant Sinha gave the

suggestion as part of its report submitted to Parliament on Tuesday on

the scrutiny of the Companies Bill, 2009 brought by the government based

on a concept paper of a panel headed y J J Irani of Tata Sons for a new

comprehensive compact law, replacing the present law amended seven

times.
It also suggested that the contributions should be limited to the

political parties "registered" with the Election Commission and sought

removal of a sub-clause for contributions to "any person for a political

purpose" as it has scope of misuse.
On another provision empowering the board of directors of a company to

donate to charitable funds in excess of 5 per cent of net profits of

last three years, the committee wants a cap on such contributions and

that too only with the consent of shareholders by a special resolution.
Also, the committee says such donations should go to only the "bonafide"

charitable institutions that "have neither attracted any restraints from

any regulatory authorities, including the Revenue
Department of Government, in the past nor have defaulted in filing the

requisite annual returns and statements with the Government."
The Committee has also sought restoration of the existing provision in

the present law regarding contributions made to the National Defence

Fund. It has been omitted without any justification, the committee

underlined.
The Bill that will now come up for discussion and passage in the next

winter session proposed from November 8 provides for liberal and speedy

incorporation of companies, including one-person company and stringent

provisions to curb misuse or diversion of the company funds for

non-bonafide purposes.
According to the committee report, the government has accepted its

suggestions in 500 cases and even come out with revised provisions in

125 cases.
The Bill's prime purpose is to modify the Companies Act of 1956 to be in

consonance with the changes in the national and international economy,

so as to make it compact, deleting the provisions that became redundant

over time and by regrouping scattered provisions on specific subjects.
It also re-writes various provisions of the Act to enable easy

interpretation, delinks the procedural aspects from the substantive law

and provides greater flexibility in rule making to enable adaptation to

the changing economic and technical environment.
The Bill provides a framework for responsible and accountable

self-regulation obviating the government approval-based regime and has

provisions to protect interests of stakeholders and investors, including

small investors and facilitate speedy winding up process based on

international practices. Only those running the companies can vouch that

it is very easy to set up a company but too cumbersome, complicated and

time-consuming procedure if one wants to wind up a company in India.

PARTIES TOLD TO MAKE PUBLIC FUNDING
KT NEWS SERVICE
NEW DELHI, Sept 1 : Political parties have been asked to make public

their funding in a draft National Anti-corruption Strategy circulated by

the Central Vigilance Commission inviting public comments up to

September 20.
The draft says disclosure of the source of funding and amount received

by the parties should be made mandatory until modalities of the state

electoral funding are worked out. It also calls for early formulation of

rules for the state funding of elections, with a suggestion that people

be encouraged to contribute to the state fund by allowing tax exemption.
It recommends that the annual financial statements of the political

parties, including income and expenditure, should be put in the public

domain. It also proposes that the political parties fight corruption by

adopting and enforcing a code of ethics among their members and

incorporating in election manifesto a commitment to integrity in

governance, prevention of corruption and avoidance of conflict of

interest in appointment to public offices.
One of the recommendations in the draft paper is to amend the law to

implicate the bribe-givers also as offenders as it says it will act as a

deterrent to the private sector indulging in corrupt practices.

"Financial disclosures and accounting norms (of companies) should be

streamlined, so that payment of bribes and kickbacks gets disclosed in

accounts and become difficult to conceal," says the draft.
It goes on to suggest that a system of blacklisting and debarring

companies found guilty of unethical practices of corruption should be

instituted. It also recommends minimum direct interface between the

people and public officials by adopting e-technology and simplifying

procedures.

US PULL-OUT FROM AFGHANISTAN FROM JULY IMPACTS INDIA
KT NEWS SERVICE
NEW DELHI, Sept 1 : The Indian foreign office got busy on Wednesday

studying impact of United States President Barrack Obama ending the

7-year American combat mission in Iraq and vowing to disengage from

Afghanistan as well from next July.
Officials said India is engaged in rebuilding the war-ravaged

Afghanistan and hence significant is his reaffirmation to begin

transferring responsibility for security to Afghans after nearly ten

years of the US presence. “But make no mistake: this transition will

begin, because open-ended war serves neither our interests nor the

Afghan people’s,” he said in a prime-time address from the Oval Office

on Tuesday.
He said the United States has met its responsibility to Iraq and that it

is now time to turn to pressing problems at home, be they weak economy

or other domestic issues. He was always convinced that getting into Iraq

was a mistake in the first place.
Over the last decade, “we have spent over a trillion dollars at war,

often financed by borrowing from overseas,” Obama said. “And so at this

moment, as we wind down the war in Iraq, we must tackle those challenges

at home with as much energy and grit and sense of common purpose as our

men and women in uniform who have served abroad.”
He said that American forces in Afghanistan “will be in place for a

limited time” to give Afghans the chance to build their government and

armed forces. “But, as was the case in Iraq, we cannot do for Afghans

what they must ultimately do for themselves,” the American president

said.