History of Company Law

The company legislation in India is primarily based on the company legislation

in England. In order to register Joint Stock Companies in India, the first
enactment, i.e., Companies Act, was passed in the year 1850, which was based
on English Companies Act, 1844. Over the period of time, a number of
amendments were made in the Companies Act, closely following the
amendments made in the English law.

Till 1956, the companies in India were regulated by the Companies Act, 1913.
In 1950, the government of independent India appointed a Company Law
Committee under the chairmanship of Shri H.C. Bhaba to review the entire
functioning of Indian Companies Act. The committee submitted its report in
1952. On the basis of recommendations of this committee in general, a bill to
enact The Companies Act, 1956, was introduced in the Parliament. The
Companies Act, 1956, by and large, once again followed the English
Companies Act, 1948.

To cope with the changing global economic scenario after a number of

amendments in the Companies Act, 1956, this Act has been replaced by new
Companies Act, 2013.

Procedure adopted for the introduction of new Companies Act, 2013

Drafting of Companies Bill, 2012

Placed before Standing Committee of Parliament and approved by the same

Approved by Lok Sabha

Approved by Rajya Sabha

Signed by President of India,

Companies Bill, 2012 becomes Companies Act, 2013

Notified in Official Gazette of India