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Companies act 2013- an indepth analysis

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Author: 
Ms. Amrita Singh
Abstract: 

The Companies Act 2013 regulates incorporation of a company, responsibilities of a company, directors and dissolution of a company. The Act has replaced The Companies Act, 1956. The 2013 Act is divided into 29 chapters containing 470 sections as against 658 Sections in the Companies Act, 1956 and has 7 schedules and came into force on 12 September 2013. The new act has comprehensive provisions related to corporate governance and independent directors. The requirements regarding independent directors prescribed under the Companies Act 2013 are much more stringent than that of the listing agreement. The present paper focuses on the various provisions relating to independent directors as contained in the Companies Act, 2013. Further it also critically analyses these provisions and addresses various concerns regarding board independence. The Companies Act 2013 that replaced the old Companies Act 1956 has been landmark change in the Indian corporate world after almost six decades. The new act has comprehensive provisions related to corporate governance and independent directors. The Companies Act 2013 was passed by the parliament on 29th August, 2013 and was made partially effective by implementing 98 Sections w.e.f. 12th September 2013.

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               Prof. Dr. ISMAIL YILDIRIM

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