Companies Bill 2009 to factor in lessons from Bhopal

The Bhopal gas tragedy of 1984 and the events as they have played out following it are likely leave an impact on the Companies Bill, 2009, which was being scrutinised until this week by Parliament's Standing Committee on Finance.

According to Salman Khursid, Union minister for corporate affairs, the government would include in the Bill the Supreme Court's expressed views on the liability of company directors for criminal acts.

Khurshid said, "The curative petition filed by the CBI (Central Bureau of Investigation) on the Bhopal case is before the Supreme Court...whatever comes from it has to be factored in the Bill, as on criminal liability of directors we need to have guidance.'' He was speaking on the sidelines of a convention of the Institute of Company Secretaries of India in Kolkata today.

''The issue is whether there is a need to reflect on new responsibilities and principles on the directors of a company...we need to look into the role of directors, independent directors and nominee directors and their responsibility,'' he said.

On Tuesday the Supreme Court had issued notices to the former Union Carbide chairman Keshub Mahindra, and six others, seeking explanation as to why they should not be charged with culpable homicide for the Bhopal tragedy.

Two days following the parliamentary committee submitting its report on the Bill, the ministry of corporate affairs (MCA) said today it was ''studying the details'' of the endorsement of basic principles made by the committee.