What is Stored in the Draft Companies Bill 2009? Relating to Accounts and Audit

The existing Companies Act 1956 has outlived its utility after having served over five decades catering the need of the corporates and governed their conducts. Considering the exponential growth of the industry and trade which has grown from mere 30,000 companies (approx.) in 1956 to 8, 00,000 companies (approx.) currently, coupled with the dynamic business environment, the existing Companies Act 1956 is not with harmony with the current era.

To keep in consistency with Global standards the Central Government has brought out the new Companies Bill 2009 to have new statutory framework for regulating the corporates. The current bill is introduced in the Lok Sabha on 3rd August 2009 and it is expected to replace the existing Companies Act 1956 when it is passed by both the houses and accent is granted by the President.

I. Introduction

The existing Companies Act 1956 is five decades over the old bill which has lived its purpose and as of now outdated and needs to be modified / replaced. The regulators aptly thought of replacing the existing Companies 1956 by introducing a new Companies Bill 2009 which is awaiting for the necessary sanction from the law making body – the parliament followed by the President’s accent.

The proposed Companies bill of 2009 has taken into consideration of dynamic business environment in today’s global scenario and as well the exponential growth of the Indian economy and the number of companies grown from mere 30,000 in the year 1956 to over eight lacs companies as on date.. The current Companies Bill 2009 is drawn up in consistency with global standards.

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