The new Bill has incorporated the recommendations of the Naresh Chandra Committee on Corporate Audit and Governance as well as that of the Joint Parliamentary Committee, and is reminiscent of the earlier 1997 Companies Bill. Not only does it highlight the aspects of good corporate governance, but also prescribes stiffer penalty provisions.

Further, it also provides for the statutory auditor-company relationship to further strengthen the professional nature of this interface, and measures required to ensure that the management and companies actually present "true and fair" statement of the financial affairs of companies. It defines the role of independent directors, and how their independence and effectiveness can be assured.