Ficci has also suggested that a sick company should voluntarily register itself with the board to enable a faster turnaround of such firms.

In a statement issued on Friday, the chamber said the definition of `sick' company under the Sick Industrial Companies (special provisions) Act (Sica) needs to be changed to enable a quicker turnaround.

"It is important to make a provision in Sica for voluntary reference to the BIFR when companies feel they have become sick or are on the verge of sickness," Ficci said.

Companies are the best judge of their own financial health, it said.

"Their decision to approach the BIFR should, however, be fully approved by the two-third majority of shareholders," Ficci said.

"Secured creditors like banks andfinancial institutions should also be permitted to refer a sick company to BIFR, going by norms relating to non-performing assets of the sick company," the chamber said.

To make the BIFR's functioning more competent and effective, Ficci proposed an overhaul in the board's constitution.

"The BIFR board should be strengthened by including members who are experts in different fields," the chamber said.

Experts from various fields like industry, finance, taxation, law, labour matters, accountancy, marketing, science, technology, economics, and banking could be considered, it said.

"There is such a provision in Sica for appointment of members. This has, however, not been implemented. Almost all the present members of the BIFR are civil servants," Ficci said.

"With sick public-sector firms having entered into the fold of Sica, the present strength of the BIFR is inadequate. It is, therefore, important to appoint more members to take the board's strength to 14," the chamber said.

Ficci furtherrecommended that to deal with sickness effectively, the BIFR should be given mandatory powers so that it could order the concerned agencies to implement the rehabilitation package agreed by them within the prescribed time limit. The BIFR procedure must also be time-bound, and the process of rehabilitation of a sick company should be completed within three months of filing a case.