E-governance and the Companies Act 2013

Abstract

The application of ICT in corporate governance leads enhanced efficiency, greater transparency, greater speed, accuracy, reduced corruption, cost reduction and better protect the interests of all stakeholders. MCA 21, an electronic filing portal, was launched on 18th February, 2006 by introducing the process of e-filing at the ROC office at Coimbatore. It was the first step to e-governance in Indian corporate sector. The Satyam fiasco (2009) in India showed how a failure of IT governancecan ruin all the pillars of corporate governance. So the need was felt then to introduce electronic initiatives through changes in the provisions of the corporate laws in India. Not only to reap the benefits but also to save our environment, the Ministry of Corporate Affairs (MCA) has taken e-governance initiatives by allowing paperless compliances by companies via electronic mode. Though the Companies Act 1956 introduced use of ICT for limited activities in 2006, the need for a robust e-governance structure became crucial for better corporate governance.In addition to retaining MCA 21, the Companies Act 2013 heightens the significance of e-governance in India and the Ministry has taken a number of initiatives in the area of e-governance for better corporate governance. Though e-governance is very popular in western countries but in India it is still an emerging technology. The present paper will throw light on the concept of e-governance, important provisions of the Companies Act 2013 relating to e-governance and its impact, examine the corporate laws encompassing e-governance in other countries and give suggestions for improvement in the area of e-governance under the Companies Act 2013.