Facing opposition from companies, the department of company affairs might go slow on reserving seats for women on company boards.

"Since some sections are opposing the proposal, it will be difficult for us to convince lawmakers," said a DCA official. Industry chambers have objected to the provision for a women's quota in the Companies (Amendment) Bill, 2003.

Women's groups are also against the proposal.

The Bill provides for inclusion of women on company boards with the aim of giving them greater representation.

"Company laws should not be used to achieve social objectives," a Federation of Indian Chambers of Commerce and Industry report said.

One option for the government is to wait till after the passage of the Bill -- introduced in the Rajya Sabha in May -- before making the provision applicable.

The second option is to drop the provision altogether. Officials are tight-lipped on what the DCA favours.

The department is also planning to raise the sitting fee of directors to at least twice the present level of Rs 5,000. A notification to this effect will be issued shortly.

It will also exempt certain professionals from undergoing prescribed training for independent directors.

The matter of providing a cooling off period for employees taking up audit assignments and approval of shareholders for transferring shares would also be looked into, officials said.

The department will, however, push for prohibition of multi-layered subsidiaries and limiting investment through one agency to keep a check on the sources and uses of funds of companies.

Officials said a parent company could have as many subsidiaries as it wanted, only 'grandchildren' would not be allowed. The joint parliamentary committee on the 2001 stocks scam had recommended these steps.

The second committee under Naresh Chandra, looking at various provisions of the Companies Act, 1956, to provide a simpler dispensation for private limited companies and partnership firms, is expected to submit its report this week.

Other proposals

• DCA is planning to raise the sitting fee of directors to at least twice the present level of Rs 5,000.
• It will also exempt certain professionals from undergoing prescribed training for independent directors.
• DCA will push for prohibition of multi-layered subsidiaries and limiting investment through one agency to keep a check on the sources and uses of funds of companies.