The Ministry of Company Affairs will introduce the new Company Bill in Parliament in the budget session of 2007. Company Affairs Minister Prem Chand Gupta said, at a conference on corporate laws organised by the Federation of Indian Chambers of Commerce and Industry (Ficci), that the ministry is giving final touches to the bill which has been comprehensively revised keeping in mind internationally accepted best practices.

The ministry has been told by various industry associations that the new law should absolve non-executive directors from the contentious Section 138 of Negotiable Instruments Act.

The ministry has also finalised the Limited Liability Partnership (LLP) Bill which will be introduced in the ensuing winter session of the parliament. Gupta said that while the industry is looking at the Naresh Chandra committee for reforms, the ministry has gone a step further by allowing multi disciplinary LLP in the bill. Clarifying on the issue of foreign investment in LLP, Gupta said that one of the designated partners in LLP must be a resident Indian.

The ministry is also working towards operationalising competition commission at the earliest. The government has introduced amendments to the Competition Act after taking into consideration legal challenges and orders of the apex court on the issue.

"These amendments are under consideration of Standing Committee on Finance and we shall take the process forward immediately on receipt of the report," he said.

The officials of the ministry will meet members of the Committee on November 16 to take the process forward.

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