Company law in India is governed by the Companies Act, 2013, which replaces the previous Companies Act of 1956. The Act lays down the rules and regulations for the incorporation, management, and dissolution of companies in India.
The Act regulates the formation, registration, and management of companies in India. It lays down the requirements for incorporating a company, including the minimum number of shareholders, directors, and authorized capital. It also establishes the rules for the management of companies, including the appointment of directors, meetings of shareholders, and the maintenance of financial records.
One of the major changes from the previous Act is that it has separated the regulation of One Person Company, Small Company, and Producer Company which was not present in the 1956 Act.
The Act also includes provisions for the protection of the rights of shareholders, including the right to vote on important matters and the right to receive dividends. It also lays down strict corporate governance rules, including the appointment of independent directors, and the formation of audit committees.
The Act also provides for penalties and punishment for non-compliance, which includes fines and imprisonment. It also provides for the appointment of tribunals and special courts to hear cases related to companies.
The Ministry of Corporate Affairs (MCA) is the government body responsible for enforcing the Companies Act and other related laws. The MCA is responsible for the registration of companies and the maintenance of the register of companies. It also conducts inspections to ensure compliance with the Act and takes action against companies that violate the Act.
Overall, Company Law in India provides a robust framework for the regulation of companies in India. It aims to provide transparency, accountability, and protection of the rights of shareholders, while also ensuring the proper functioning of the corporate sector in India.
