Trilok Choudhary, Gujarat National Law University
Abstract
The word company is derived from a Latin term ‘Com’ which means together and ‘Panis’ which means bread and was originally referred to as association of persons who took their meals together. The concept of a company or a corporate firm was first bought in Britain in the form of large, incorporated partnership. However, these undertakings were not so successful because of separation of ownership and management between different trustees and also absence of any laws to govern them led to formation of many spurious firms to exploit public money. Ultimately British parliament passed the Bubbles Act of 1720 to prohibit the formation of these firms. But with the advent of industrial revolution and colonization, big joint stock companies came into existence and a need was felt for a proper law to govern them, which resulted in the joint stock companies act, 1844.
Today corporate form of organizations are increasingly preferred for economic and commercial activity and have contributed significantly to the growth of Indian economy. We have more than 8 lakh companies functioning in India engaging in wide range of trade and services and also providing increasing employment opportunities. And to sustain this growth, there was a need for a legal framework which was compact, amenable to clear interpretation and something which would meet the requirement of ever evolving economic activities and business models. In the above backdrop many changes and modification were undertaken in the existing company laws by our policy makers and even entirely new laws were introduced where the need was felt. In this research paper I have study this changes and modification which have taken place between the period of 1956 to 2019 and have try to understand the main contents and the reason for these changes.
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