Corporate Sector Current Affairs - 2020

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Carbon Disclosure Project: India ranks 5th

On January 21, 2020, the Carbon Disclosure Project, an annual report on carbon reduction activities of different countries and their firms was released by a non-profit organization Global Reporting Initiative. According to the report, the countries were ranked based on their corporate responsibilities of carbon reduction. In order to assess the role played by them, their science-based targets were weighed.

Highlights

According to the report, 58 Indian companies disclosed their environment related activities to the organization. Based on their disclosure, the report concludes that 98% of the top Indian companies have now formed committees to address climate related issues. The change has been witnessed between 2018 and 2019.

United States topped the list with 135 companies being transparent in their disclosure. Followed by US, Japan ranked second with 83 companies. On the third, fourth and fifth ranks were UK (78), France (51) and India (38) respectively.

The report said that, over 6,900 companies have so far disclosed their data through Carbon Disclosure Project. This contributes to 55% of world capitalization.

Global Reporting Initiative

The Global Reporting initiative helps businesses, organizations and governments to understand the impacts of climate change, corruption and human rights.

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Committee on Companies Act, 2013 submits its report to Finance Ministry

Ministry of Finance and Corporate Affairs constituted the Company Law Committee in September 2019. The Committee submitted its report to the Finance Minister on November 18, 2019.

Objective of the Committee

The Committee was constituted to decriminalize the Companies Act, 2013. This is being done to provide Ease of Living for Corporate in the country.

Recommendations of the Committee

  • The committee has recommended amendments to 46 penal provisions associated with the law. The amendments are either to remove criminality or to allow rectification through alternate methods or to restrict punishment only to fine. Bottom line, the committee suggests to lenient punishments mentiones in the law
  • The Committee has recommended to provide further easing of living for law abiding corporate.
  • It also insisted on wider consultations during following decisions by the Ministry of finance
    • Permitting appeals in NCLT against the orders of Regional Directors
    • To review provisions on disqualification of directors
    • Reviewing provisions that debars audit firms.

Significance

With World Institutions decelerating growth rates of India, every step towards the financial flow in the country is important. Though India is an agricultural Economy, majority of the contribution towards its GDP is from the service sector. Therefore, it becomes important to provide Ease of Living for the corporates to boost the growth rate.

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