Attending a lecture on corporate governance here, Jethmalani said he would take the Companies Bill to the cabinet "very soon" for clearance. Importantly, failure to report default in re-payment to small depositors to the Company Law Board within 60 days is proposed to be made a criminal offence, the minister said.

The concept of public trustee representing shareholders' interest would also be abolished. "Shareholders can protect their own interest," he said. The public offer will also redefine and offer to more than 50 persons would be treated as public issue. Furnishing financial statements would be made mandatory and the failure would be treated as an offence.

The distinction between the public and the deemed public sector companies would go. "If itis a private company, let it remain a private company," Jethmalani said at the lecture organised by the Confederation of Indian Industry and the Indian Council for Research on International Economic Relations.

Other immediate changes proposed in the Companies Act, 1956 are: providing a minimum paid-up of Rs one lakh for private company and Rs five lakh for public company entrustment of administration of matters relating to issue and transfer of securities in case of listed companies by the Securities and Exchange Board of India compulsory issue of securities in dematerialised form for initial public offering of Rs 10 crore or more statement by directors saying they have taken sufficient care for proper maintenance of accounts, safeguarding the assets and presenting and detecting the fraud.

The public listed companies with paid-up capial of Rs five crore would be required to set up audit committees.