Governance Must Be Easy, Transparent; Reforms Reflect India's Responsiveness To Changing Times: FM

Finance and Corporate Affairs Minister Nirmala Sitharaman on Tuesday said that governance must be easy, transparent and facilitative, as she reviewed the working of regional directorates and registrars of companies.

While emphasising the need to make processes more simplified and make systems more user-friendly to facilitate the country's march towards Viksit Bharat 2047, she also said frequent legislative reforms like the Insolvency and Bankruptcy Code (IBC) reflect India's responsiveness to changing times.

To ensure more transparency in terms of the functioning of the systems at the corporate affairs ministry, the minister also suggested setting up a live dashboard and exhorted the officials to find effective ways to convey legal requirements to stakeholders.

One suggestion was to hold frequent in-house discussions to improve the ease of doing business. Governance must be easy, transparent and facilitative. The ministry must strive to be futuristic to be able to serve stakeholders in a time-bound manner, Sitharaman said, according to an official release.

The minister had detailed discussions with Registrars of Companies (ROCs) and Regional Directorates (RDs) on various issues, including processing of forms and fast-track mergers.

Delivery of services like incorporation /voluntary exit of companies/LLPs through the central facilities, e-governance, harmonisation of forms, matters related to adjudication, inquiries, inspection and investigation manuals, prosecution, appeals against adjudication orders and compounding of violations were also discussed.

ROCs and RDs come under the corporate affairs ministry, which implements companies and other legislations. According to the minister, the ministry has made frequent and required amendments in the Companies Act and Rules to keep up with changing times.

Citing the example of IBC, Sitharaman said, 'This is done to ensure that the systems are responsive to the needs of today's India'.

The minister credited Indian corporate governance for gaining the trust of citizens by providing transparent financial information and also highlighted the importance of the minstry's role in guiding and regulating companies to ensure their governance structures are well-managed.

Corporate Affairs Secretary Deepti Gaur Mukerjee informed the minister that the ministry has standardised its manuals on enforcement. Further process and rule simplification for transparent and timely delivery of services is already underway, she added.

At the review meeting, Minister of State for Corporate Affairs Harsh Malhotra said the ministry must follow the motto of maximum governance and minimum government.