The Companies Act, 2013:Some Reflections

Economy of a nation depends on the acceleration in the economic activity of the country. Economic activity of a country, though influenced by a large number of causes, primarily hinges upon the growth of corporate sector regulated by a well knit corporate law. Our corporate law was hitherto contained mainly in the Companies Act, 1956, supplemented by many more legislations such as Securities Contract Regulation Act 1956, Securities Exchange Board of India Act, Depositiories Act etc. The Companies Act 1956 was very aptly enacted after a long deliberation on the study of various corporate laws of the world. It catered to the needs of our growing economy for a very long time and helped India grow from scratch to an economic power to be reckoned and recognised by the world. Though it did not fault the economy, changing global scenario of the corporate world necessitated the simplification, improvement and induction of new concepts in abridged legislation in juxtaposition to the voluminous Companies Act 1956.