WHY A NEW LAW WAS NEEDED?
· The changing national and international economic environment Exponential growth of the Indian economy Changes in the stakeholders’ expectations Manifold Increase in Number of Companies
|
Year |
No. of Companies |
|
1956 |
30,000 approx |
|
2013 |
11,00,000 approx |
· The need of a legal framework was felt to enable the Indian corporate sector to adopt the best international practices in a globally competitive manner, fostering a positive environment for investment and growth
· Companies Bill 2012 was passed by Lok Sabha on 18th December, 2012 and subsequently, was passed by the Rajya Sabha on 8th August, 2013.
· The bill comprises of 29 chapters, 470 Clauses with 7 Schedules as against 658 sections and 14 Schedules in the Companies Act, 1956
· Substantively a law based on Rules (as may be prescribed).
In 470 Clauses the word “as may be prescribed” has been used at around 336 places.
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