| The existing Companies Act 1956 has outlived its utility | | | | I. Introduction |
| after having served over five decades catering the | | | | The existing Companies Act 1956 is five decades |
| need of the corporates and governed their conducts. | | | | over the old bill which has lived its purpose and as of |
| Considering the exponential growth of the industry and | | | | now outdated and needs to be modified / replaced. |
| trade which has grown from mere 30,000 companies | | | | The regulators aptly thought of replacing the existing |
| (approx.) in 1956 to 8, 00,000 companies (approx.) | | | | Companies 1956 by introducing a new Companies Bill |
| currently, coupled with the dynamic business | | | | 2009 which is awaiting for the necessary sanction |
| environment, the existing Companies Act 1956 is not | | | | from the law making body - the parliament followed by |
| with harmony with the current era. | | | | the President's accent. |
| To keep in consistency with Global standards the | | | | The proposed Companies bill of 2009 has taken into |
| Central Government has brought out the new | | | | consideration of dynamic business environment in |
| Companies Bill 2009 to have new statutory | | | | today's global scenario and as well the exponential |
| framework for regulating the corporates. The current | | | | growth of the Indian economy and the number of |
| bill is introduced in the Lok Sabha on 3rd August 2009 | | | | companies grown from mere 30,000 in the year 1956 |
| and it is expected to replace the existing Companies | | | | to over eight lacs companies as on date.. The current |
| Act 1956 when it is passed by both the houses and | | | | Companies Bill 2009 is drawn up in consistency with |
| accent is granted by the President. | | | | global standards. |