Companies Act, 2013- An Insight

What makes an economy or a country developed, developing or least developed? Undoubtedly the answer that comes to our mind is the level of economic activities backed by industrial growth, development and prosperity. If we talk of industrial activities, the corporates will have a lion's share in it. Ultimately we found that healthy economic growth depends upon healthy corporate growth. But in modern corporate world, the healthy corporate growth is a function of many factors some of which are responsible and accountable corporate governance, greater transparency in management, unbiased accounts and independence in audits, socially responsible corporate behaviour etc. These characteristics of companies which are stated previously sounds pretty good. If these are made optional, then barring a handful of companies, others will not even bother about it. Because the latter thinks that company is a profit or money making machine for the promoters or the investors and not for others. By following this principle companies always try to maximise the profitability and protect their own interest by adopting every possible means.

Therefore the Companies Act 2013 will allow the country to have a modern legislation for regulation of corporate sector in India. The act, amongst other aspects provides for and legalises business friendly corporate regulation/pro-business initiatives, e-governance initiatives, good corporate governance, Corporate Social Responsibility (CSR), enhanced disclosure norms, enhanced accountability of management, stricter enforcement, audit accountability, protection for minority shareholders, investor protection and activism and better framework for insolvency regulation and institutional structure. In this paper efforts have been made in relation to churning out the new and need of the hour provisions incorporated in the Companies Act 2013.