Indian Company Law on Corporate Governance – A Critical Analysis

Abstract

In the year 2013, the Govt. of India introduced a new and revised Companies Act, 2013 and the Rules, 2014. The Act is now sleek and thoroughly overhauled and revised. Many provisions of the erstwhile Act have been omitted, many existing provisions revised, merged, extended and rewritten, and many provisions have been newly introduced as per the requirement of current conditions and reality. However, the companies and other entities have been facing practical difficulties in many areas while implementing some of the provisions of the Act. Considering the genuine obstacles encountered by the corporates, the Govt. of India introduced the Companies (Amendment) Act, 2017 in January, 2018. The Amendment Act, 2017 has addressed difficulties in implementation and rectified various inconsistencies prevailing in the Act, 2013. In this article, the author enumerates important enactments of Indian Companies Act, 2013 concerning Corporate Governance, critically analyses new Company Law, discusses the changes taken place to the 2013 Act in regard to key topics of governance and makes new suggestions for further improvement in the standard of Corporate Governance.