History of Company Legislation in India

Evolution of Companies Legislation:  

The organization's demonstration relaxed to time in India have been following English  organizations acts with specific adjustments to suit Indian conditions. The primary administrative  institution for 'enrollment of business entities was spent in the year 1850. This demonstration  depended on the English Organizations' Act, 1844 which perceived organizations as an  unmistakable legitimate substance however didn't concede to it the benefit of restricted risk 

Company’s legislation in India owes its beginning to the English company law. The organizations' demonstration relaxed to time in India have been following English organizations acts with  specific adjustments to suit Indian conditions. The primary legislative enactment for registration  of joint-stock companies was passed in the year 1850. This demonstration/act depended on the  English organizations/companies act, 1844 which perceived organizations as a distinct legal entity  legitimate substance however didn't concede to it the benefit of restricted risk. In the fourteenth  century, the word 'Company' was embraced by specific vendors for exchanging abroad. This was,  pretty much an augmentation of the vendor societies in remote exchange.  

Before sixteenth century's over Royal Charters allowed syndication of exchange to individuals  from the Company over a specific domain. These organizations were called managed Companies. The Company Legislation in India has firmly followed the Company Legislation in England. The  primary administrative institution for enrollment of Joint Stock Companies was passed in the year  1850 which depended on the English Companies Act, 1844. This Act perceived organizations as  unmistakable legitimate elements however didn't present the idea of constrained risk. The idea of  constrained obligation, in India, was perceived just because by the Companies Act, 1857 intently  following the English Companies Act, 1856 in such manner. The Act of 1857, in any case, kept  the obligation of the individuals from banking organizations boundless. It was uniquely in 1858  that the constrained obligation idea was stretched out to banking organizations moreover. From  that point in 1866, the Companies Act, 1866 was passed for merging and revising the law  identifying with joining, guideline and ending up of exchanging organizations and different  affiliations. This Act depended on the English Companies Act, 1862. The Act of 1866 was reevaluated in 1882 to acquire the Indian Company Law congruity with the different changes made  to the English Companies Act of 1862. This Act proceeded until 1913 when it was supplanted by  the Companies Act, 1913. The Act of 1913 had been passed following the English Companies  Consolidation Act, 1908 

Previous company law: 

As per Sec. 2(67) of the Companies Act, 2013; previous company law means any of the laws  specified below: 

i) Acts relating to companies in force before the Indian Companies Act, 1866; ii) The Indian Companies Act, 1866; 

iii) The Indian Companies Act, 1882; 

iv) The Indian Companies Act, 1913; 

v) The registration of transferred Companies Ordinance, 1942; 

vi) The Companies Act, 1956 and 

vii) Any law corresponding to any of the aforesaid Acts or the ordinances and in force 

a) in the merged territories or a part B state (other than the state of Jammu and Kashmir),  or any part thereof, before the extension thereto of the Companies Act, 1913; 

b) in the state of Jammu and Kashmir or any part of thereof, before the commencement of  Jammu and Kashmir (Extension of Laws) Act, 1956, insofar as banking, insurance and  financial corporations are concerned, and before the commencement of Central laws  (Extension to J&K ) Act, 1968, insofar as other corporations are concerned; 

viii) The Portuguese Commercial Code, insofar as it relates to sociedades anonimas; and ix) The registration of companies (Sikkim) Act, 1961 

x) Companies Bill, 2008

Present Law:  

On the recommendations of Bhabha Committee, to set out the responsibility of companies, their  directors and secretaries, to provide the procedure for winding up, an amendment was proposed to  the early act of 1956. Due to combining the impact of J.J. Irani committee and Bhabha Committee,  on 29th August 2013, the President gave assent to this act, which resulted in its enforcement since  12the September 2013. 

After this also, an amendment to this 2013 act has been assented by the president on 31st July 2019,  which also resulted in a new amendment act, named, The Companies (Amendment) Act, 2019. 

Conclusion: 

Thus, with this study, if the history of company’s legislation in India, it is pointed out that like the  other legislation made at the time of the independence, this legislation is also a result of the British  period and also contain some provision in respect of that period, which is by the time amending  and interpreting by our judiciary and parliament as per our present socio condition. 

Payal Agrawal 

S. S. Jain Subodh Law College, Rajasthan University, Jaipur