New Delhi: Government today (Aug 4, 2004) released a Concept Paper to prune the voluminous Companies Act by two-third and to address, inter-alia, issues like independent directors, structure of investing companies and the retirement age of directors.

"We have released the Concept Paper to solicit suggestions from the industry and various stakeholders. In about three months time, we will start studying the opinions suggested, and subsequently try to bring a bill," Company Affairs Minister Prem Chand Gupta told a news conference.

The Companies Act, enacted in 1956, contains 781 provisions. Government plans to cut it short to about 287.

Enlisting the salient features of the Concept Paper, Gupta said it included simplification of the law, removing redundant provisions, streamlining existing sections, re-arranging inter-related sections with the same topic and placing procedures as part of rules.

"Our idea is to make corporate actions hassle-free and smooth, enhance compliance levels, reduce compliance costs, which in turn will lead to greater investor protection," Gupta said.

On the proposed steps, Government was contemplating tackling the menace of vanishing companies, he said, adding the Concept Paper advocated the submission of PAN number, passport, photograph and other identification details.

"We will decide the terms and conditions of prospectus," he said.