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The Companies Act, 1956, which is proposed to be repealed by the Companies Bill, 2011, provides for more stringent penal provisions for action against vanishing companies, prevention of frauds etc.

An expert group under the chairmanship of Dr. J. J. Irani was constituted on 02.12.2004 who submitted its report to the Central Government on 31.05.2005. The report seeks to rationalise the existing Companies Act, 1956 in the context of the present economic and business environment.


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