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Dr. Jamshed J. Irani

ChairmanExpert Committee on Company LawNew Delhi, 31 stMay, 2005

Dear Mr. Minister,

I have the privilege and honour to present the report of the Expert Committee to

advise the Government on the new Company Law, set up by the Ministry of Company

Affairs vide Order dated 2ndDecember, 2004.

The Committee had the benefit of participation by several experts in various

disciplines. It has tried to take a comprehensive view in developing a perspective on

changes necessary in the Companies Act, 1956 in context of the present economic and

business environment. Nevertheless, corporate law is a vast subject and we expect that

while the report of this Committee would provide useful inputs for its revision, it may

still not be the last word on various issues. However, our effort has also been aimed at

making India globally competitive in attracting investments from abroad, by suggestingsystems in the Indian corporate environment which are transparent, simple and globally

acceptable.

I thank you for providing me an opportunity for working with a wonderful group

of dedicated people in presenting our perspective on complex corporate law issues.

Yours sincerely,

Dr. Jamshed J. Irani

The HonourableShri Prem Chand Gupta,Minister for Company Affairs,New Delhi.

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16. A company should also be able to decide on remuneration to non-

executive directors including independent directors. This may be in the form of

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217 (2AA)

requiring a Director R

.

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Acknowledgements

The Committee wishes to acknowledge the assistance received from many

quarters in completing its task. All relevant information and records needed by

the Committee were promptly supplied by the Ministry of Company Affairs, who

also provided logistical and administrative support as well as secretarial assistance

to the Committee. The Institute of Chartered Accountants of India helped the

Ministry in arranging the venues and making other arrangements for holding of its

meetings.

The Committee was also supplied with technical documentation and

background material by the Institute of Chartered Accountants of India (ICAI),

the Institute of Company Secretaries of India (ICSI) and the Institute of Cost andWorks Accountants of India (ICWAI), who also made valuable suggestions

through their representatives on the Expert Committee.

The Committee would like to record its high appreciation for the efforts

put in by many professionals and experts who met the Committee or had sent in

their suggestions in writing to the Concept Paper published by the Ministry in

2004.

The Committee would also like to acknowledge the in-depth analysis done

in papers prepared by all the members of the Committee. The Committee wouldalso specially acknowledge the painstaking work put in by Shri M.M.K. Sardana,

Shri U.K. Sinha, Shri Bhagwat Swarup, Shri R.S.Loona, Shri M.R.Umarji and

Shri Sumant Batra, special invitees, in preparing papers on various subjects and

participating actively in related discussions.

Specific mention is to be made of the work put in by Shri Bharat Vasani

and Ms.Sandhya Kudtarkar of the House of Tatas, Shri Allwyn Noronha of

ASSOCHAM and Shri Sunderarajan of CII in assisting the Committee.

The Committee wish to record its high appreciation of the hard work put

in by the team of officials from the Ministry of Company Affairs who laboured

ceaselessly to enable timely and smooth holding of meeting, making technical

material available, collating and compiling responses from a host of

organizations, experts etc and providing the same to the Committee, conducting

presentations by various subgroups and compilation of the recommendation of the

Committee. The Committee would like to convey its thanks to Shri Jitesh Khosla,

Member-Convener of the Committee, Shri R.Vasudevan, Shri Samir Biswas and

other members of the support team provided by the Ministry of Company Affairs

to this Committee.

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