Introduction & Background to Companies Act, 2013

# Introduction to the Companies Act, 2013

## Why a New Act?

The Companies Act, 2013 was enacted to consolidate and amend the law relating to companies. It replaced the older Companies Act, 1956.

## Reasons for Replacing the 1956 Act

• Changes in the national and international economic environment.
• Need to facilitate expansion and growth of the economy.
• Make corporate regulations more contemporary.

## Structure of the Act

## Objectives of the Act

1. Improve corporate governance.

2. Simplify regulations.

3. Strengthen interests of minority investors.

## Key Takeaway

Think of the 2013 Act as a modernized rewrite of company law, designed for a globally integrated Indian economy.