In order to remove practical difficulties, ambiguities and anomalies arising out of the partial and hurried implementation of the new Companies Act of 2013, the Confederation of Indian Industry (CII) urged the new government to review the new Companies Act and the norms issued under it. CII President Ajay Shriram has said that the rush to notify the new company law has introduced disruptive features, making it harder for corporates to ensure compliance.
CII President said that many new concepts have introduced in the legislation for the first time which could be implemented over the period of time. Meanwhile, final set of company act norms, which was released in the last week of March, required implementation from April 1. By adding further, he said that India already ranks very low in terms of ease of doing business and the new company law will further add to the cost and complications of doing business. An unclear and cumbersome Companies Act would further impede business sentiment in the country, which is looking to improve its image after a series of setbacks like retrospective changes to tax laws, poor economic conditions.
Further, Ajay Shriram has asserted that owing to the absence of any unambiguous clarifications on norms from government front, companies are resorting to different interpretations of the provisions. Furthermore, there is no uniform interpretation of even items of ordinary business such as appointment of Independent Directors.