“Reform and updation of the basic legal framework for corporate entities is essential to enable sustainable economic reform”-A comparative study

Due to the change in the business environment after the introduction of Liberalization, Privatization and Globalization in the early 1990’s and the regulatory body in the securities market in the form of SEBI, there was a need that the provisions and rules in the Companies Act should be amended. Therefore, an updating of the basic legal framework was the need of the hour to facilitate the economic reform and the new Companies Act has acted and reflected the same approach. But, the need for streamlining this Act was felt from time to time as the corporate sector grew in pace with the Indian economy and with that intent the new companies act was incorporated. This act contains several provisions which are in conflict with the earlier law and some concepts are totally new to Indian Economy. Concepts like CSR, One Person Company, Small Companies and Market Centric Legislation have come into picture which have reformed and updated the basic legal framework for corporate entities. This is very crucial for sustainable economic development. It is often said that Companies Law can never be implemented and studied in isolation. It needs constant updating and revival with the changing market and economic situation domestically as well as internationally.