E-Paper
New Companies Act on anvil
Groundwork for a new Companies Act and efforts to close in on fly-by-night operators for investor protection, marked 2004.
Groundwork for a new, simplified and pruned Companies Act and serious efforts to close in on fly-by-night operators for investor protection, marked the year 2004 for the Company Affairs Ministry that was carved out as a separate ministry by the UPA Government.
Company Affairs, which last was part of the Finance Ministry, moved full throttle to cut the number of provisions in the existing outmoded and excessively-voluminous 1956-drafted Companies Act, one of the biggest acts in the world today, from about 781 to less than 300, something which corporate India has been demanding for long.
The Ministry also promised steps aimed at simplifying the working environment for companies, eyeing at reducing some of the unnecessary and time-consuming regulatory requirements. However most of these, it said, would be in place with the coming in of the new Act.
