Nov 27: The board would consider the request of the company and make an order within 30 days, which the company shall be bound to comply with. A company which fails to report or comply with the order of the board shall be punishable for imprisonment extending up to three years and also be liable to fine or a fine of not less than Rs 500 per day during which such default continues.The Bill entrusts the Securities and Exchange Board of India (Sebi) with powers in all matters relating to public issues and transfers, including power to prosecute defaulting companies and their directors, and includes a Directors' Responsibility Statement in the Board's report to highlight the accountability of directors in good corporate governance.It also enjoins on all public listed companies with paid-up capital of Rs 5 crore or more to set up an Audit Committee of the Board of Directors as a measure for good corporate governance and provides for a minimum paid-up capital of Rs 1 lakh for private companies and Rs 5 lakh for public companies.The dividend disbursal period has been reduced from 42 days to 30 days, while the word "dividend" would include "interim dividend" also.The Bill also provides for appointment of one director as a nominee of small shareholders, who constitute minimum of 1,000 in number and having shares of not more than Rs 20,000.The Bill bars the directors of a public company, which does not file annual accounts and annual returns continuously for three years, from becoming the directors of other public companies for five years.Similarly, in case of any public company which fails to repay its depositors on maturity of deposit amount or debentures, dividend and interest on due dates, the wholetime directors will be debarred from becoming a director of any other public company for a period of five years.The Bill also empowers the Comptroller and Auditor General of India to appoint the auditors in respect of government companies and also to provide that shareholders of such companies will fix their remuneration in annual general meeting.
