Odisha Govt to provide Corporate Governance Training to MSMEs

Bhubaneswar, Oct 26: In another step towards making MSMEs of Odisha more competitive in global market, Govt have taken up the issue of corporate governance training for them in the context of new Companies Act-2013. This has been discussed in a high level meeting held under the chairmanship of Chief Secretary Sri Gokul Chandra Pati in secretariat conference hall on Monday wherein Vice President, Indian Institute of Company Secretaries of India (ICSI) Mrs. Mamata Binani along with Chairperson Eastern India Regional Council of ICSI Mrs. Sunita Mohanty outlined the issues for discussion.

Considering the issues, Chief Secretary has advised MS&ME department to take up specific training and sensitization programme on corporate governance for MSMEs in Odisha. The proposal for setting up MS&ME clinic in Odisha under joint partnership of the State Govt and ICSI also received in principle approval in the meeting.

Chief Secretary Sri Pati said that sole proprietorship enterprises have unlimited the individual entrepreneurs are subject to high financial risk and vulnerability in these units.  Their conversion to new companies Act of 2013 would reduce this risk to limited liability.  The MS&MEs need to be sensitized about the new provisions in the law.

Company Secretary Mrs. Binai mentioned that as per provisions of the new Act, the MSME units can be registered as One Person Company (OPC). The existing proprietorship units could also be converted to companies under the new Act.  It was decided to prepare definite action plan for training and sensitization of MSMEs and PSUs on these provisions. The programme will be implemented under joint aegis MS&ME department and ICSI. Further, Chief Secretary advised the department to sensitize farmers’ groups to be registered under the new Act as producer companies.

Replying to a media query after the meeting, Mrs. Binani mentioned that conversion of the MEME units to companies under the new Act would be helpful for them in a number of ways. Their 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.

Additional Chief Secretary Finance Sri R. Balakrishnan, Secretary MS& ME Sri Panchanana Das, President ICSI Bhubaneswar Chapter Sri Debadatta Mohapatra along with other senior officers of concerned departments participated in the deliberations.