Historical Development of Company Legislation in India
The English Company Law is the source of origin of Company legislation in India. Various Companies Act passed in India from time to time were based on the English Companies Act.
In 1850, the first law on 'registration of joint stock companies was enacted in India which was based on English Companies Act of 1844 known as Joint Stock Companies Act, 1844.
This Act of 1850 recognised the company as a separate legal entity but the privilege of limited liability was not granted to the company under the Act. The principle of limited liability was recognised in India by virtue of the Joint Stock Companies Act, 1857 which was passed following the English Law, the Joint Stock Companies Act, 1856.
The next law relating to Company in India was Companies Law of 1866 legislated (based on English Companies Act of 1862) 'for consolidating and amending the law relating to the incorporation, regulation and winding up of trading companies and other associations.'
This Act was amended and remodelled in 1882 and it remained effective till 1913.
In 1913, the Indian Companies Act of 1913 was legislated following the English Companies (Consolidation) Act, 1908.
This Act of 1913 was found to be highly inadequate in the course of its operation and thus it went through numerous amendments till the enactment of the Companies Act, 1956. The Companies Act, 1956 was enacted with the compliance of the recommendations of the Bhabha Committee.
In 2013, Companies Act, 2013 was enacted which replace the Companies Act, 1956 after receiving the assent of the President of India on 29 August 2013.
In 1850, the first law on 'registration of joint stock companies was enacted in India which was based on English Companies Act of 1844 known as Joint Stock Companies Act, 1844.
This Act of 1850 recognised the company as a separate legal entity but the privilege of limited liability was not granted to the company under the Act. The principle of limited liability was recognised in India by virtue of the Joint Stock Companies Act, 1857 which was passed following the English Law, the Joint Stock Companies Act, 1856.
The next law relating to Company in India was Companies Law of 1866 legislated (based on English Companies Act of 1862) 'for consolidating and amending the law relating to the incorporation, regulation and winding up of trading companies and other associations.'
This Act was amended and remodelled in 1882 and it remained effective till 1913.
In 1913, the Indian Companies Act of 1913 was legislated following the English Companies (Consolidation) Act, 1908.
This Act of 1913 was found to be highly inadequate in the course of its operation and thus it went through numerous amendments till the enactment of the Companies Act, 1956. The Companies Act, 1956 was enacted with the compliance of the recommendations of the Bhabha Committee.
In 2013, Companies Act, 2013 was enacted which replace the Companies Act, 1956 after receiving the assent of the President of India on 29 August 2013.
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