Critical Review of the Companies Act, 2013
Abstract
The new Company law has been put in place by the Government with the best intentions and it is now the turn of the corportate sector to demonstrate that it will play according to the rules. The Government on its part must trust the corporate sector to function honestly and also keep a watch. What the Government wants the corporate sector to do is to give back a small portion of the wealth it has created with the help of the resources drawn from the society and its surroundings to provide succor and relief to the under privileged sections of the society. Companies would in fact gain from such initiatives as they would enhance their reputation and image among all sections of people. The Government has rightly reduced the need for companies to seek approvals for managerial remuneration from the government. Shareholders must satisfy themselves that the remuneration, managerial personnel in their company wish to draw, are in line with the market and that they do not enrich themselves merely because they are serving prosperous companies.
Authors
Gaurav Aggarvwal, Devendra Singh