THE COMPANIES ACT 2013: A STRENGTHENING TOOL FOR CORPORATE GOVERNANCE

The much-anticipated Companies Act, 2013 received presidential assent on August 29, 2013, although the route to its enactment began in 2004 with the efforts of the then-government to replace an ineffective statute. Significant measures in the areas of shareholder democracy, e-governance, compliance and enforcement, disclosure rules, auditors, and mergers and acquisitions are included in the ‘2013 Act.' It establishes a more effective legal framework that is treated in accordance with international norms. This article seeks to describe the concept of the Companies Act, 2013, the creation of the new Act, and its usefulness as a tool to promote governance in the Indian corporate sector, highlighting the importance of the Companies Act 2013 in raising the bar on corporate governance.