ANALYSIS OF COMPANY LAW: A STEP TOWARDS BETTER GOVERNANCE

Abstract

Before independence of India the first companies Act was passed in 1850 based on the English companies Act 1844. After that companies Act 1857, 1866, 1913 was enacted. After independence the first companies Act was passed in 1956. The greatest corporate failure of India was the Satyam scandal which came to public on January, 2009. Under this backdrop a new rigid Act was necessary to pass in India. The new companies Act of India is passed in the year 2013. Enactment of any corporate law changes the legal and task environment of the corporate sector. There were many drawbacks in the companies Act 1956. This paper will analyze whether the new companies Act 2013 is able to overcome the drawbacks in the in the companies Act 1956. This paper intends to bring about how effectively the companies Act 2013 helps in fulfilling the corporate Governance and sustainable development by comparing the companies Act 1956 and the companies Act 2013. This paper is basically analytical in nature. For analysis, information have been collected from various secondary sources such as Published research journals, website of the ministry of corporate affairs, Government of India, newspaper articles, books and interaction with the stakeholders.  It is found that different new rules have been introduced like, concept of key managerial Personnel, women director, corporate social responsibility, one person company, special court for resolving offences, class action suit etc. Provisions of some penal and punitive measures also mentioned in different sections of the companies Act 2013. The new Act confers greater power and responsibility in the governance of the company. It has been concluded that the new companies Act 2013 will be fruitful if it is properly implemented. Central Government should take rigid action to resolve the corporate scandal.