The new provisions will be introduced in the Companies (Amendment) Bill, 1998, which is expected to be tabled in Lok Sabha in the winter session, beginning November 30. The bill will replace the ordinance that was promulgated on October 30 to introduce buyback, sweat equity and free inter-corporate investment, among others.

According to the ordinance, unclaimed dividend would be transferred to the investor education and protection fund after they remain unclaimed or unpaid for five years. The provision meant that claims could be made after the transfer of unclaimed money to the fund.

The government realised that the provision will require maintenance of large volumes of records and deployment of considerablestaff.

The department has, therefore, decided to go back to the original proposal made in the Companies Bill, 1997, that the money must be transferred to the fund after seven years, and thereafter no claims will be entertained.

On the definition of "prevailing bank rate of interest", which will form the basis of interest to be charged on inter-corporate loans, the department wants to amend the ordinance and clearly spell out its definition to remove ambiguities that may arise, allowing companies to circumvent the provision.

Since the bill is pending before parliament, the cabinet's approval has also been sought for pleading with the Lok Sabha speaker to waive Rule 67 of the `Procedure and Conduct of Business of Lok Sabha'. The rule does not allow introduction of an identical bill without the permission of the speaker.

The Companies (Amendment) Bill has to be introduced in the winter session to prevent the ordinance from lapsing. According to the Article 123 of the constitution, an ordinancepromulgated has to be laid before both houses of parliament, and it ceases to be operative at the expiry of six weeks from the re-assembly of parliament. Since the house in the winter session will convene for about four weeks only, the ordinance will lapse if the bill is not placed in Lok Sabha.

Department sources said passage of the Companies Bill, 1997, is highly unlikely even in the budget session, which normally begins in February, as it has been referred to the parliamentary standing committee on home affairs.

The committee is yet to hold a meeting for taking up the bill.

Since the bill involves 458 clauses and three schedules, the standing committee is expected to take a few months to submit its report.