Companies act
Business Ethics
Provisions in company act 2013 with respect to CSR and Corporate Governance
Provisions in company act 2013 with respect to CSR and Corporate Governance
The long-awaited Companies Bill 2013 got its assent in the Lok Sabha on 18 December 2012 and in the Rajya Sabha on 8 August 2013. After having obtained the assent of the President of India on 29 August 2013, it has now become the much awaited Companies Act, 2013 (2013 Act). An attempt has been made to reduce the content of the substantive portion of the related law in the Companies Act, 2013 as compared to the Companies Act, 1956 (1956 Act). In the process, much of the aforesaid content has been left, ‘to be prescribed’, in the Rules (340+) which are yet to be finalised and notified. As of the date of this publication, 99 sections have been notified and a few circulars have been issued clarifying the applicability of these. The 2013 Act introduces significant changes in the provisions related to governance, e-management, compliance and enforcement, disclosure norms, auditors and mergers and acquisitions. Also, new concepts such as one-person company, small companies, dormant company, class action suits, registered valuers and corporate social responsibility have been included.
India has recently witnessed a series of corruption and bribery scandals – from the allocation of telecom licenses and coal blocks to the more recent allegations of kick-backs in a multi-million dollar helicopter procurement contract.This has not only dampened investor sentiment but has also raised questions about India’s status as a leading developing economy. One of the reasons most frequently put forward for the level of corruption and bribery in India is its legal and regulatory regime. Some of the key laws date back more than 50 years and have not kept pace with the changing contours of the economy. In addition, enforcement through the court system takes many
Provisions in company act 2013 with respect to CSR and Corporate Governance
Provisions in company act 2013 with respect to CSR and Corporate Governance
The long-awaited Companies Bill 2013 got its assent in the Lok Sabha on 18 December 2012 and in the Rajya Sabha on 8 August 2013. After having obtained the assent of the President of India on 29 August 2013, it has now become the much awaited Companies Act, 2013 (2013 Act). An attempt has been made to reduce the content of the substantive portion of the related law in the Companies Act, 2013 as compared to the Companies Act, 1956 (1956 Act). In the process, much of the aforesaid content has been left, ‘to be prescribed’, in the Rules (340+) which are yet to be finalised and notified. As of the date of this publication, 99 sections have been notified and a few circulars have been issued clarifying the applicability of these. The 2013 Act introduces significant changes in the provisions related to governance, e-management, compliance and enforcement, disclosure norms, auditors and mergers and acquisitions. Also, new concepts such as one-person company, small companies, dormant company, class action suits, registered valuers and corporate social responsibility have been included.
India has recently witnessed a series of corruption and bribery scandals – from the allocation of telecom licenses and coal blocks to the more recent allegations of kick-backs in a multi-million dollar helicopter procurement contract.This has not only dampened investor sentiment but has also raised questions about India’s status as a leading developing economy. One of the reasons most frequently put forward for the level of corruption and bribery in India is its legal and regulatory regime. Some of the key laws date back more than 50 years and have not kept pace with the changing contours of the economy. In addition, enforcement through the court system takes many