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New Delhi, Jan 5: The union Cabinet on Tuesday decided to repromulgate the Companies (Amendment) Ordinance permitting companies to buy-back their own shares and ordinances relating to the Prasar Bharati and Central Vigilance Commission.
The repromulgation was necessitated as the ordinances could not be ratified by Parliament during the winter session and were lapsing later this month.The Cabinet also decided to promulgate an ordinance to amend the Patents Act on the lines of the Patents (Amendment) Bill as passed by the Rajya Sabha in the winter session of Parliament.
The Cabinet, however, did not take up the much-awaited Ninth Plan document for final approval today and according to an official spokesperson another meeting would be shortly called for the purpose. It is learnt that the Cabinet is likely to meet on January 10 to finalise the draft.
The companies ordinance, being repromulgated, seeks to allow companies to buy-back their own shares, to provide for nomination facility to the holders ofshares and debentures, to include Infrastructure Development Finance Company Limited as a public finance institution.
The Department of Company Affairs (DCA) had written to the Cabinet secretariat on repromulgating the ordinance on Thursday December 23 immediately after Parliament was adjourned sine die. The Companies (Amendment) Bill 1998 was introduced in the Lok Sabha on December 22 to replace the ordinance promulgated on October 31. The bill could not be passed that the house was short of the required quorum that day.
The next day, the final day of the session, it could not be taken up as the House disrupted several times over the issue of statehood to Vananchal. It is now expected that the ordinance would be promulgated by the President before January 11. DCA has been very keen to repromulgate the ordinance as it is felt the ordinance would help shore up business sentiment in the country and overcome the adverse conditions faced by the corporate sector.The ordinance relating to patents amends thePatents Act on the lines of the Patents (Amendment) Bill as passed by the Rajya Sabha in the winter session of Parliament.
The bill provides for granting of exclusive marketing rights (EMRs)) of pharmaceuticals and agricultural chemicals, besides ensuring national security in arms traffic and fissile material.
The upper house had passed the bill on December 22 with one official amendment. However, the bill could not be taken up in the Lok Sabha due to opposition parties seeking more time to study the legislation and the house adjourned sine die on December 23. The new ordinance is likely to be ratified by the Government in the Budget session.
The ordinance has been necessitated as according to a ruling of the Disputes Settlement Body of the World Trade Organisation (WTO) India has to fulfil its obligations until April 19 this year.
The cabinet also approved revalidation of the Central Vigilance Commission Ordinance of August 25.1998 and Central Vigilance Commission (Amendment) Ordinance of October 27beyond January 11, 1999. The promulgation of the ordinance will enable the government to give continued effect to the provisions of these two ordinances.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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