02 Mar Brief insight of Corporate Law in India
As the number of industries, companies and entrepreneurs in our country grew rapidly. The need to hire corporate law firms and lawyers rises too. The legal representatives who specialize in corporate law are in demands more than ever. Corporate Laws are the rules and regulations which govern the conduct, policies and commencement of various business entities like partnerships, companies, groups and individuals. This body of law protects and safeguards the organization and people against unfair trade practises or other unscrupulous ways.
The most ancient form of companies emerged as early as the 16th century. It only expanded from that point on, taking business beyond the boundaries of a country and promoting international and global trade. These activities were a front for people with corrupt intentions. In India, the concept for Corporate law in India was introduced in 1866, which further introduced Limited Liability in India. There existed 11,89,826 working companies as of June 2018, “Out of the total number of 17,79,000 registered companies in India, 5.43 lakh were closed as of 30th June, and 1,390 were classified as dormant.
The corporate laws in our country are extensive. The constitution enlists these laws in various aspects of the business to regulate and supervise the activities of business organizations. Some of These are-
1.State Financial Corporation Act, 1951
This act gives rules and regulations regarding the establishment of financial corporations and institutions. This act was passed in October 2001.
2.Indian Partnership Act, 1932
Introduced on 8th April, 1932, this act is to lay down the code of conduct regarding the functionality of Partnership phases and improve the laws existing already. According to this act, ‘An agreement between two or more people who have agreed to share the profits of the company. It is carried on by all or any one of them acting upon all.”
Special Economic Zones are crucial areas for the development of any country. As such, this law guards the formation, development and management of these zones. This act was passed on 23rd June,2005.
4.The Companies Act, 2013
This act is to govern drastic changes and oversee that the companies are compliant with the conduct. This act governs how a company is for, winded up, important documents required and their power and scope. This act was again amended in 2017 with many significant changes.
5. Prevention of Money- Laundering (Amendment) Act,2015
As it is obvious for the name. This act is to prevent unfair practises like Money-Laundering in the business world. This act is an amendment to the previous Act of Money Laundering Act,2002.
6. The Depositories Act, 1996
This act was passed on 12th August,1992. It supervises the depositories and securities related to it.
These are some of the most essential corporate laws, which is important for all companies to follow. Laws are the preserver of the country as well as the individuals. It ensures that the felonies in a country are reduced to a minimum, and the development is enhanced to the maximum.
Corporate Laws are the future of the legal market as the development pace of the country increases, so will the emergence of different firms and organizations. If left unguarded, these companies may indulge in unwanted practises like price manipulation, adulteration, hoarding etc. Thus, your company should be well aware of the rules and regulations that should follow in order to exist legally. It is the need of the hour! Protect your company by hiring a professional law firm from the day of incorporation in order to prevent any court intervention.