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Rajya Sabha also clears Companies Amendment Bill

Parliament has approved the Companies (Amendment) Bill, 1999, with its passage in the Rajya Sabha today after a walkout by the entire opposition barring the Congress.

The bill, among other things, seeks to allow companies to buy back their shares with certain safeguards.

It replaces the Companies (Amendment) Ordinance, 1998, promulgated on October 31, 1998.

Replying to the brief debate on the bill, Minister for Law and Company Affairs M Thambi Durai said the bill was drafted to help the corporate sector and boost the country's economy. He said it would allow financially sound companies to buy back their own shares from the market.

Earlier, the House rejected a statutory resolution seeking to disapprove of the ordinance.

Participating in the debate, the Leftist members opposed the bill lock, stock and barrel, describing it as "delinquency-friendly" and a measure that would lead to the diversion of funds, artificial raising of prices, and depletion of working capital.

But Congress and Bharatiya Janata Party members supported the bill, saying it would help the corporate sector and give a fillip to the economy.

UNI

EARLIER REPORT:
Lok Sabha passes Companies Amendment Bill

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