Abstract: Finally, the youngest Minister of Corporate Affairs has been successful in bringing the much awaited fresh perspective in the Corporate Law to its logical conclusion. It would only be fair to acknowledge several positive indications in the Companies Act, 2013 (referred to as the new Act), including self-regulation and appropriate empowerment. Overall it is a genuine attempt and a much awaited overhaul with the changing environment and forward thinking. Implementation and transition to comply with the new law would need regulatory support and change in the mindset. Corporates would need significant preparation and groundwork to abide by the law in substance. It is also necessary that the regulatory authorities ensure adequate monitoring and enforcement mechanism, in the absence of which the objective may not be achieved.
The new Act contains only 470 clauses compared to 658 sections in the erstwhile Act. However, there appears to be more than 300 clauses that are subject to substantive rules to be prescribed. A combination of the proposed Act and the related Rules may turn out to be larger than the existing law. Timely response of the regulatory authorities to the challenges posed by multiple interpretations and related administration, would make implementation easier and is of utmost importance.
Title: The Companies Act, 2013: A Significant Milestone
Author: Himanshu Arora
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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