To make MSMEs able to compete in the global market, the State Government on Monday decided to provide corporate governance training to entrepreneurs in the context of new Companies Act-2013.
A meeting held at the State Secretariat under chairmanship of Chief Secretary GC Pati took this decision. Indian Institute of Company Secretaries of India (ICSI) vice-president Mamata Binani along with ICSI Eastern India Regional Council Chairperson Sunita Mohanty outlined the issues for discussion.
Considering the issues, the Chief Secretary advised the MS&ME Department to take up specific training and sensitization programme on corporate governance for MSMEs in the State. The proposal for setting up a MSME clinic jointly by the State Government and the ICSI also received in principle approval at the meeting.
Pati said the financial risks of sole proprietorship enterprises can be reduced after coming under the new Companies Act of 2013. “The MSMEs need to be sensitized about the new provisions,” he said.
ICSI VP Binai said MSME units can be registered as One Person Company (OPC) under the new Act. The existing proprietorship units can also be converted to companies under the Act, she said.
Replying to a media query after the meeting, Binani said the converted companies’ liability would be limited only to the extent of unpaid amount in the capital fund of the company. Besides, banks and venture capitalists would also be comfortable with them in extending financial assistance.