New Delhi: The Union Cabinet has decided to withdraw the Companies (Amendment) Bill, 2003. The decision to pull the Bill out of the Parliament has been taken due to numerous objections and suggestions received on it from industry associations, professionals, institutions and individuals.

The Bill, which was introduced in May 2003, drew largely from the recommendations of the Naresh Chandra Committee on Corporate Audit and Governance and the Joint Parliamentary Committee on stock market scam, besides some leftover items of the Companies Bill, 1997.

Sources say it was felt that the issue was becoming "very confusing" since further amendments were being proposed to the Companies (Amendment) Bill. The subsequent amendments were being proposed to assuage the feelings of industry. While the May 2003 Bill contained about 174 clauses, the subsequent amendments proposed were upwards of 40.

Though certain provisions of the Bill were welcomed by industry, it was widely felt that the proposed law, in its present form will create hurdles for the smooth functioning of the corporate sector.