After numerous many leakages of sensitive information on faulty governance and unearthing of scam, Government is facing firework from ruling party and its parent organisations. The friendly government of corporate houses with allegedly better relationship with corny – capitalists business organisations, once again looking towards corporate jungle for next round of its killing hunt. As per primary level media reports, Ministry of Corporate Affairs preparing for additional information from directors to nab them at first sounding of the alarm bell. This is in public domain now; government is going to ask passport information of directors who are a citizen of India. This news is bigger than it appears in earlier newspaper reports.
After claiming ‘successful’ demonetization, the government is passionately looking for every person which might have contributed to its practical failure in the eye of public and inner conscience of the leadership. Soon after raising doubt about demonetization by the otherwise passive political opposition, Prime Minister Modi used strong words about Chartered Accountant fraternity. This statement results in series of early conclusions of pending disciplinary actions against several high profile chartered accountants in India. Soon after, Prime Minister used the platform of Company Secretaries for sharing their thoughtful vision and mission.
Post demonetization year of 2017 will be remembered for strike off of more than two lakh companies because of government suspicious of their shoddy existence. These companies failed to report their annual financial statements and annual return with the government for continuous three years. Soon thereafter, about 5 lakh directors of these companies were declared disqualified by the Government. The government was about to claim tag of champion of corporate governance.
Alas, this government is again on the back foot after its friendly billionaire Neerav Modi followed footsteps of its long-term parliamentarian Vijay Mallya. The Mallya-Modi episode is now forcing the government to present a strong scheme of controlling fugitive tendencies of such directors. The Fugitive Economic Offenders Bill (copy available here) is just one such step.
The Government do not want to be seen as careless as being claimed by its critics. According to highly placed sources, Ministry of Corporate Affairs is now discussing some strong steps. We will discuss few such measures here.
As per newspaper report, report government want to have the record of passport of all directors. Logically, a person without passport shall give a declaration to that effect. Sources believe that passport details shall be voluntarily compulsory in the line of current Aadhar regime. In absence of passport details, authorities were constrained in taking swift action to prevent defaulters from fleeing the country. It is also reported that many Indian citizens actually have dual citizenship without surrendering Indian citizenship. It is an offence under Indian law but prosecution on this ground is rarely recorded.
Information on movement
Promoter directors of certain companies shall be asked to share information about their possible cross movement at the time of visa application. Such conditions either may be included in the standard loan agreement. A debatable note circulated among a class of legal experts suggests registration system for recording visa permissions and on arrival visa eligibilities of promoter directors. It may be possible that cross-border movement of certain directors shall need monthly prior permission from the majority of independent directors of the company.
This is also suggested that directors may be asked to voluntary give permission of real-time tracking of their geolocation through GPS. It is not yet clear whether it will be included in the standard loan agreements or legal mandate of the government.
Surrender of Passport
Banks are proposing power for seeking surrender of passport in case of reporting of a related account as an NPA. On acceptance of such proposal, such directors may apply for permission of their cross-border movement.
A technical protocol is working on 9G technologies. In that protocol, mind to mind communication, geo-positioning and tracking, and controlling of thought by sending counter communication of tracked thought in the mind shall be possible. The Government is proposing to invest heavily in such research.
Best of luck Director! will it not be long time April fool for you all?
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