The government is willing to look into industry's demands for changes in the Companies (Amendment) Bill, 2003.
It is also ready to allow more time to companies to act on the Bill's provisions, like the appointment of women and independent directors on their boards.
VK Dhall, secretary, department of company affairs, told Business Standard that a time-frame for the implementation of the provisions of the Bill was yet to be decided.
He, however, indicated that after the passage of the Bill in Parliament, the government would give companies time till their next annual general meetings or even a year after that to usher in the changes.
Dhall's comments are significance as some corporates and legal experts had predicted that companies might face a shortage of independent directors.
Dhall said the government was willing to consider the demands of industry and was open to introducing some changes in the Bill if companies felt it would be detrimental to their growth.
"We want to reduce the government's interference to the minimum. At the same time, we need to protect investors and ensure that provisions are not misused," the secretary said.
With regard to women directors, Dhall said the provision was inserted to provide adequate representation for women on the boards of various companies.
"The provision, if cleared by Parliament, will be a part of the Act but the department will decide the timing for implementing the provision in consultation with industry," he added.
DCA officials said a company board's powers to dispose off assets could also be curtailed as some promoters had been resorting to asset-stripping.
"A decision which affects all shareholders cannot be taken by the board alone. The shareholders should have a say in such matters," a DCA official said.
The new Bill was introduced in Parliament last month.