Q.1) The recent Companies (Amendment) Bill, 2017 is a step forward in the right direction towards creating a friendly environment for entrepreneurs. Discuss (GS-2)
- Definition of small business is going to create changes.
- The new Companies bill recognizes all sizes and types of companies existing.
- There are less court appointments due to simplified compliances.
- Self attestation has made great difference in saving time of businessmen as well as government.
- Sweat Equity Shares can be issued at any time.
- Relaxation has been given under Sec 185 (primarily deals with the subject of person to whom company cannot give loan) Sec 186 (enlists the exceptions and specifies the limits up to which a company can give loan), in company loans and deposits
Provisions of Companies (Amendment) Bill, 2017:
The provisions of Companies (Amendment) Bill, 2017 are as follows:
- By this act 93 amendments been carried out in Companies Act, 2013 to provide relief to stakeholders and to provide more clarity on some of the provisions of Companies Act, 2013.
Bring major changes in the Companies Act, 2013:
- The Companies (Amendment) Bill, 2017 seeks to bring about major changes in the Companies Act, 2013, was passed by Rajya Sabha.
Strengthen corporate sector:
- The amendment seeks to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve ease of doing business in the country.
Ease of doing business:
- The bill is amongst the reforms that act towards targeted ease of doing business in India.
- Wholly Owned Subsidiary (WOS) of foreign company can hold EGM outside India whereas Annual General meeting of unlisted company can be held anywhere in India.
- The government now strives to make India an attractive destination for investments.
Addressing the difficulties:
- Addressing the difficulties, i.e. the stringent compliances that were there in the initial draft of the bill in 2013, have been now removed.
- This bill now has made some practical changes keeping into account the problems faced by corporate and plugging loopholes.
- The Bill has aligned disclosure requirements in the prospectus with the regulations made by SEBI.
- Stringent penalties in case of non-filing of balance sheet and annual return every year.
Harmonization between companies:
- Government has brought in harmonization between companies act, SEBI, RBI rules and regulation.
Generation of jobs:
- Employment generation is going to be boosted with contract business going to be biggest beneficiary.
- The act aims to usher into corporate governance regime, plug the loopholes in forms of defaulters and allow foreign investors to look at India as a destination to do business.
Flexibility in penalties and the prosecution:
- The penalties and the prosecution has been brought down as earlier they were too stringent and hence detrimental to business.
Restriction on valuers:
- Section 247 of the Companies Act 2013 prohibits a registered valuer from undertaking valuation of assets in which he has a direct or indirect interest.
- Amendments limit the prohibition to three years prior to a valuer’s appointment or three years after the valuation was conducted.
- In name of control, the business should not be suffocated.
- Corporate governance strengthened with government support ensures business to flourish in an enabling environment.
Q.2) What do you understand by Economic Value? Do you think that Environmental Values are important than economic values? Comment. (GS-3)
- Economic value is the maximum amount a consumer is willing to pay for an item in a free market economy or the amount of time an individual will sacrifice waiting to obtain a government-rationed good in a socialist economy.
- There are nine common Economic Values that people typically consider when evaluating a potential purchase. They are:
- Efficacy — how well does it work?
- Speed — how quickly does it work?
- Reliability — can one depend on it to do what they want?
- Ease of Use — how much effort does it require?
- Flexibility — how many things does it do?
- Status — how does this affect the way others perceive me?
- Aesthetic Appeal — how attractive or otherwise aesthetically pleasing is it?
- Emotion — how does it make us feel?
- Cost — how much does one have to give up getting this?
Importance of Environmental than economic values:
Yes, environmental values are important than economic values because of the following reasons:
- Disaster risk: Environmental degradation is a major factor in disaster risk with immediate consequences on the lives and livelihoods of the people they serve.
- Sustainable support and strong commitment to promote greater public adoption of environmentally sustainable living is therefore critical, to enable healthy and safe living within ecological constraints.
- Non Market Values: Unlike economical values, environmental values are non-market values.
- It is the environment-friendly behaviors which cannot be quantified and needs network of volunteers and presence in almost every community across the globe.
- Environmental degradation: Unlike economical disasters, environmental degradation takes a lot of time to come back to its original track.
- Thus, it is necessary to embark on effective and adequately funded resilience building measures, which will also address environmental degradation issues, starting with the poorest and most vulnerable parts of the world.
Q.3) What do you understand by Cultural Nationalism? With suitable examples comment on the present day scenario of cultural nationalism among Indians. (GS-1)
- Cultural nationalism is a form of nationalism in which the nation is defined by a shared culture. It is an intermediate position between ethnic nationalism and civic nationalism.
- But we are in a situation today where any criticism of certain offices is branded as anti-national and sedition.
- This is nothing but enforced cultural nationalism.
- Be it lynching or beef ban, it is unimaginable to expect that a country as diverse as India can be expected to lead a homogenised existence, with a single ideology or monochromatic way of living, or a standard diet.
Examples of enforced cultural nationalism in the country:
National anthem in cinema halls:
- The Supreme Court’s decision to make cinema halls play the National Anthem before the start of any film show in 2016 cited the ‘love for motherland’ as a reason behind the mandate.
- But it has opened up the debate on nationalism and its branding.
- Besides, there is no such rule in any other institutions be it Parliament, police stations or for that matter courts of the country, including the Supreme Court.
Mandatory singing of ‘Vande Mataram’
- The Madras High Court has came out with its recent order that ‘Vande Mataram’ must be sung regularly in educational institutions and elsewhere, including workplaces like factories and offices.
- The courts have failed to recognise that such actions of singing or standing up are now no longer genuine acts of nationalism but instead a performance.
Military tank at JNU
- There are recent reports of installing a military tank on the JNU campus to infuse nationalism in the students.
- Enforced nationalism cannot promote true culture. People and cultures, regardless of belonging to a particular class or geography, can truly grow and evolve only if they can transcend all social and territorial limitations.
- Instead of enforced nationalism we need to create an environment in which the feeling of nationalism comes from within through visionary leaders, good governance and an inclusive harmonious environment in the country i.e inclusive nationalism.
- Inclusive nationalism is the system of Nationalism which includes people of a different nationality to help the country reach its goals.
- We need to evolve into a country that elicits nationalism and feeling of love from everyone residing in it.
- It is time we followed the lead of modern constitutional democracies such as the United Kingdom, the US, and New Zealand who have severed anti-sedition laws from the law books.