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.
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